Sam Boughedda

Investing.com — Sierra Wireless Inc. (NASDAQ:) shares gained significantly after an improved performance for its fourth-quarter and full-year earnings, which it reported Tuesday evening.

Sierra Wireless stock rose 17.87% on Wednesday to $17.15.

Fourth-quarter revenues of wireless communication equipment manufacturer were $149.9million, a 24% increase over the quarter in 2020.

This was due to a stronger demand and previous inventory investments. It also reflects an increase in manufacturing flexibility.

The earnings per share were 3 cents, which is well over the 19 cents loss per share in the fourth quarter 2020.

Investing.com polled analysts and predicted a 12 cent loss per share on $126.48million in revenue.

According to the company, full-year earnings increased by IoT connectivity service growth. Total revenue rose 5.5% to $473.2million. However, the capacity limitations in Vietnam in the third quarter had a minor impact on revenue.

Phil Brace (President and CEO at Sierra Wireless) stated that “We worked closely together with our customers and partners to deliver strong sequential growth and year-overyear revenue growth during the Fourth Quarter.”

Sierra stated that Covid-19 will continue, as well as the many variants. However, it is still uncertain about the effect on its global business. But, the company expects to see Q1 2022 sales between $135m and $150m.

B. Riley analyst Josh Nichols raised his price target for Sierra shares to $24 instead of $21.50 after the report. Investors were told by the analyst that Sierra shares have a lot of value after the company had passed through key points.