BUZZ-Sierra Wireless: Biggest percentage drop in nearly a decade

Fri Nov 6, 2015 10:46am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

** Canadian wireless equipment maker's shares down 23 percent in Toronto

** U.S.-listed shares fall as much as 28 percent to $18, making it the stock's biggest intraday percentage decline in nearly a decade

** At least four brokerages cut PT by as much as $8 to as low as $20 after company reported lower-than-expected Q3 results on Thursday

** "While Sierra has several suppliers, a delay in key components could affect the company's ability to meet demand and generate required revenue," Northland Securities' analyst writes on company's challenges to meet PT

** Sierra's gross margin expected to remain "under pressure" due to component supply issues, Raymond James analysts write

** Company sees Q4 revenue $148-$151 mln and adj. EPS 9-11 cents; had reported Q4 2014 revenue of $149 mln, adj. EPS of 29 cents

** 3 of 14 brokerages rate the stock "strong buy" and rest "hold"; median PT is $23

** Up to Thursday's close, stock had fallen 5.5 pct this year