Sierra Wireless Hit Hard in Early Trading (SWIR)

Shares of Sierra Wireless, Inc. are trading lower this morning at 9.84, or down over 15.5% from the previous close of 11.76. Analysts at Cowen and Company remain with a neutral outlook on Sierra Wireless (Nasdaq: SWIR). The report was updated after the company reported weaker than expected 4Q09 results after market close yesterday.

The adjustments to their forecasts were made accordingly. The analysts say, "Pro forma EPS of $0.09 came in well below the company's $0.17 guidance on in-line revenue. SWIR appears to have lost share in the datacard/personal hot spot market. We are reducing our FY10 estimates on the lower gross margin/higher opex outlook and baseline reset of USB sales. Maintain neutral."

It appears that Sierra Wireless, Inc. has its work cut out for it. Margins were weaker in the 4th Quarter of 2009. Factoring in that with the expenses of the company, the outlook going forward has been hurt as a result. Cowen and Company is reducing its 1st Quarter of 2010 EPS to ($0.12) from $0.02.