Sierra Wireless (SWIR), maker of wireless and standard network gateways and routers, is seeing big gains by specializing in the emerging machine-to-machine communications market — a part of the Internet of Things.
The company reported strong earnings late Wednesday. The company is a prominent player in the emerging machine-to-machine (M2M) communications market. It designs wireless and embedded modules, gateways and routers for the M2M and mobile wireless markets.
M2M broadly refers to any technology that enables networked devices to exchange information and perform actions without the manual assistance of humans. It connects industrial, medical, automotive and devices to the Web. M2M is also expected to transform the factory automation, agriculture, utility, health care, retail and insurance industries.
Earnings per share surged 118% to 24 cents a share, nearly double the consensus estimate. Sales growth accelerated for the third straight quarter, rising 28% to $143.3 million.
The stock rose 27% Thursday and gapped out of an seven-week cup base.