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Sierra Wireless (SWIR) Stock Jumps 6.4%: Will It Continue to Soar?
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Sierra Wireless shares soared 6.4% in the last trading session to close at $25.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.2% gain over the past four weeks.
The increase in share price can be attributed to strong demand for the company’s products amid a robust demand environment. The company’s sound inventory investment to tackle supply chain issues is also acting as a tailwind. In the last reported quarter, Sierra Wireless’ revenue from IoT Solutions jumped 79.3% while revenues from Enterprise Solutions was up 17.2%. Overall, revenues were up 60.1% in the first quarter of 2022.
The company’s IoT solutions are gaining from higher demand for connected devices globally. Enterprise solutions are benefiting from increased demand for routers in industrial and public safety verticals.
For the second quarter, the company expects revenues to be in the range of $160-$175 million.
This wireless broadband modem maker is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +800%. Revenues are expected to be $166.74 million, up 25.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sierra Wireless, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SWIR going forward to see if this recent jump can turn into more strength down the road.
Sierra Wireless is a member of the Zacks Wireless Equipment industry. One other stock in the same industry, Ubiquiti Inc. (UI - Free Report) , finished the last trading session 1.3% lower at $249.39. UI has returned 1.2% over the past month.
Ubiquiti's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.24. Compared to the company's year-ago EPS, this represents a change of -49.6%. Ubiquiti currently boasts a Zacks Rank of #3 (Hold).
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Sierra Wireless (SWIR) Stock Jumps 6.4%: Will It Continue to Soar?
Sierra Wireless shares soared 6.4% in the last trading session to close at $25.53. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.2% gain over the past four weeks.
The increase in share price can be attributed to strong demand for the company’s products amid a robust demand environment. The company’s sound inventory investment to tackle supply chain issues is also acting as a tailwind. In the last reported quarter, Sierra Wireless’ revenue from IoT Solutions jumped 79.3% while revenues from Enterprise Solutions was up 17.2%. Overall, revenues were up 60.1% in the first quarter of 2022.
The company’s IoT solutions are gaining from higher demand for connected devices globally. Enterprise solutions are benefiting from increased demand for routers in industrial and public safety verticals.
For the second quarter, the company expects revenues to be in the range of $160-$175 million.
This wireless broadband modem maker is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +800%. Revenues are expected to be $166.74 million, up 25.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Sierra Wireless, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SWIR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Sierra Wireless is a member of the Zacks Wireless Equipment industry. One other stock in the same industry, Ubiquiti Inc. (UI - Free Report) , finished the last trading session 1.3% lower at $249.39. UI has returned 1.2% over the past month.
Ubiquiti's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.24. Compared to the company's year-ago EPS, this represents a change of -49.6%. Ubiquiti currently boasts a Zacks Rank of #3 (Hold).