Sierra Wireless Inc. (TSX:SW)(NASDAQ:SWIR) is a Richmond-based multinational wireless communications equipment designer and manufacturer. Shares of Sierra Wireless climbed 7.35% on March 27 as it was the best performing technology stock on the S&P/TSX Composite Index. The stock is still down 15.3% in 2018 thus far.
Sierra stock has responded well to analyst upgrades in recent days based on positive projections for its sales in fiscal 2018. The company released its 2017 fourth quarter and full-year results on February 9. In the fourth quarter revenue increased 12.6% year over year to $183.5 million with revenue from Enterprise Solutions surging 52% to $21 million. IoT Services revenue shot up 73.5% to $11.9 million. A recent note from Roth Capital projected that IoT-optimized LTE solutions are likely to see heightened adoption and grow from an installed base of 300 million to 1.2 billion by 2020.
For the full-year Sierra posted revenue of $692.1 million which represented a 12.4% increase from 2016. Revenue from IoT Services was up 25.5% to $34.7 million in 2017. Part of this revenue boost was due to the acquisition of Numerex, a provider of managed machine-to-machine solutions.
Sierra has received high grades from analysts of late who are expecting positive growth into the next decade. Shares of Sierra have declined 41.2% year over year. The tech stock provides an attractive price for investors on the hunt for a possible bargain that could experience explosive growth in the long term.
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