Why Sierra Wireless, Inc. Stock Is Sinking Today
Shares of Sierra Wireless (NASDAQ: SWIR) fell as much as 18.2% Thursday morning. As of 11:47 a.m. EDT, the stock had recovered to a slightly milder 17.3% drop.
The embedded networking chip designer was busy Wednesday night. Sierra released its second-quarter earnings report and announced a $107 million acquisition of Internet of Things device management expert Numerex.
Sierra's second-quarter earnings increased 50% year over year to $0.30 per share while revenue rose 11% to $173.5 million. Analysts would have settled for earnings of $0.28 per share on sales near $170 million. On the other hand, the midpoints of management's guidance for the third quarter fell just below the current Wall Street views on both the top and bottom lines. Sierra is facing currency exchange headwinds while a large automotive computing client is trading in an existing Sierra deal for a next-generation solution with lower gross margins on the chip supplier's side of that contract.
Source: Fool.com
