Jumat, 30 Juli 2010

Sierra Wireless shares surge after 2Q results

Shares of Sierra Wireless Inc. jumped Friday after the Canadian wireless modem maker posted better-than-expected second-quarter results, prompting at least one analyst to upgrade its shares.
Sierra posted a net loss of $8.6 million, or 28 cents per share, compared with a loss of $5.9 million, or 19 cents per share, in the same period a year earlier.
Excluding stock options expenses, restructuring costs and other items, the company earned 14 cents per share in the latest quarter.
Revenue rose 18 percent to $159.1 million from $135.3 million.
Analysts, on average, were expecting a profit of 8 cents per share on revenue of $156.6 million, according to a survey by Thomson Reuters.
Morgan Joseph analyst Ilya Grozovsky upgraded Sierra to "Buy" from "Hold," with a target price of $10.
"As (manufacturing) customers serving a wide range of industries integrate wireless services into their products, we believe Sierra is well positioned to post further sales and (earnings per share) growth," the analyst wrote in a note to investors.
Sierra's shares jumped $1.42, or 18.7 percent, to $9 in after-hours trading. The stock has traded in the 52-week range of $6.26 and $13.02.

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