BUZZ-Sierra Wireless: Set to erase YTD gains on weak forecast

Thu Aug 4, 2016 5:43pm EDT
 
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** Sierra Wireless shares tumble 17.4 pct to $14.18 in extended trading, coming off halt, on company's weak forecast

** Canada-based Internet of Things (IoT) pure play says "seeing signs of softer short-term demand and tighter inventory management with some established OEM customers and programs"

** Forecasts Q3 revenue, non-GAAP EPS well below market estimates and expects slower-than-anticipated Q4 growth

** Company expects FY 2016 revenue, non-GAAP EPS to be below low end of prior forecasts

** Weak forecast comes despite company saying it is seeing solid revenue contributions from new OEM programs; Q2 rev tops analysts' estimates for only 2nd time in four quarters

** Regular Friday trade is set to see the stock drop below Wall St analysts' median PT of $16.25; median PT up 20 pct in past 3 months, but down 5 pct in past month

** Stock set to erase its 9 pct YTD gains; Comforting Q1 report in May had pushed stock into positive territory for the year (RM: savio.dsouza.thomsonreuters.com@reuters.net)