Market Overview

Earnings Outlook For Sierra Wireless

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Sierra Wireless (NASDAQ: SWIR) unveils its next round of earnings this Thursday, November 12. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts are predicting Sierra Wireless will report a loss of $0.15 per share on revenue of $158.63 million. In the same quarter last year, Sierra Wireless reported EPS of $0.03 on revenue of $174.03 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 600.0% decline in the company's EPS figure. Revenue would have fallen 8.85% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.35 -0.19 -0.05 0.11
EPS Actual -0.30 -0.41 -0.08 0.03
Revenue Estimate 143.27 M 157.68 M 170.88 M 191.15 M
Revenue Actual 144.06 M 157.58 M 174.30 M 174.03 M

Stock Performance

Shares of Sierra Wireless were trading at $11.05 as of November 10. Over the last 52-week period, shares are up 44.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Sierra Wireless is scheduled to hold the call at 18:00:00 ET and can be accessed here.

 

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Posted-In: Earnings