Sierra Wireless shares skyrocket as 2Q beats on top and bottom line

Sierra Wireless Inc (NASDAQ:SWIR,TSE:SW) shares surged in New York as it topped expectations on both the top and bottom lines, thanks to its fast growing Enterprise Solutions and IoT (internet of things) Services businesses.

Earnings came in at US$0.03 per share for the three months to Jujne 30 on revenue of US$201.9mln.

Wall Street had expected US$0.14 per share on revenue of US$197.9mln.

“Our two fastest growing and highest margin businesses – namely Enterprise Solutions and IoT Services – represented 25% of total revenue in Q2 and we continued to strengthen our position as a leader in device-to-cloud IoT solutions,” said Kent Thexton, interim chief executive at the firm.

“In the second quarter of 2018, we delivered solid revenue and adjusted EBITDA growth on a year-over-year and sequential basis,” he added.

Quarterly revenue for the three business segments was broken down as follows.

OEM Solutions revenue was US$150.9 mln for the three months, up 4.5% compared to US$144.4mln in 2017.

Revenue from Enterprise Solutions was US$28.4mln in the second quarter, up 31.1% compared to $21.7mln in the second quarter of 2017.

Meanwhile, revenue from IoT Services was US$22.6 million in the second quarter, up 209.6%, compared to US$7.3mln in the second quarter of 2017 driven by the contribution from Numerex and organic subscriber growth.

Shares in New York added 20.37% to US$19.50 each.

Story by ProactiveInvestors