Company News

BUZZ-Sierra Wireless: Down after disappointing guidance; Macquarie downgrades

** Canadian wireless equipment maker’s U.S.-listed shares down 23.9 pct at $11.79 premarket after co posted Q4 profit, revenue below Wall Street estimates

** For the year, co expects revenue to be flat, given current macro-economic environment and some weakness that it is experiencing in the automotive, enterprise networking and mobile computing markets

** Macquarie downgrades co to “underperform” from “neutral”

** Says given co’s disappointing guidance and length of restructuring plan (18-24 months), brokerage expects shares to trade at the low end of their valuation range until sales turnaround begins to occur

** 3 of 11 brokerages rate the stock “buy” or higher, 7 “hold” and 1 “sell”; their median PT is $20 - Refinitiv data

** Following results, at least 6 brokerages cut PT

** Shares up 15.4 pct YTD vs. a 10.3 pct rise in the S&P 1,500 communication equipment index (Reporting By Geetha Panchaksharam)