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Investing.com — Sierra Wireless Inc. (NASDAQ:SWIR) shares gained significantly after an improved performance for its fourth-quarter and full-year earnings, which it reported Tuesday evening.
Sierra Wireless stock rose 17.87%, to $17.15, on Wednesday.
The wireless communications equipment designer reported fourth-quarter revenue of $149.9 million, representing a 24.4% rise compared to the same quarter of 2020.
The revenue growth came after more robust demand, previous investments in inventory, and improved manufacturing flexibility amongst production.
Earnings per share reached 3 cents per share, well above the 19 cents per share loss in the fourth quarter of 2020.
Analysts polled by Investing.com anticipated a loss per share of 12 cents on revenue of $126.48 million.
The company said full-year earnings were boosted by the growth of IoT connectivity services, with total revenue increasing by 5.5% to $473.2 million. However, revenue was slightly impacted by capacity constraints in Vietnam during the third quarter.
“We worked closely with our customers, partners and suppliers to deliver strong sequential and year-over-year revenue growth in the Fourth Quarter,” said Phil Brace, president and CEO of Sierra Wireless.
With the continuation of Covid-19 and the numerous variants, Sierra said it remains uncertain regarding the impact on its global business. However, it sees Q1 2022 revenue between $135 million and $150 million.
Following the report, B. Riley analyst Josh Nichols raised the firm’s price target on Sierra shares to $24 from $21.50. The analyst told investors in a note that the shares are attractive with the company having passed through a key inflection point.
