Overview
France semiconductor firm's Q4 revenue slightly missed analyst expectations
Net loss for Q4 widened significantly compared to previous quarters
Company repurchased 9.7% of ADSs, authorized additional 10% buyback
Outlook
Sequans expects cash-flow break-even by end of 2026
Company sees strong demand across LTE-M, Cat 1bis, RF transceivers
Sequans authorized to repurchase an additional 10% of ADS
Result Drivers
PRODUCT SALES - Q4 revenue increase driven by product sales, despite year-over-year decline due to lack of Qualcomm license revenue
GROSS MARGIN DECLINE - Gross margin fell to 37.7% due to higher product sales and inventory provisions
BITCOIN IMPAIRMENT - Operating loss impacted by $56.9 mln unrealized loss on Bitcoin impairment and $8.4 mln realized loss on Bitcoin sales
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $7 mln | $7.03 mln (3 Analysts) |
Q4 Net Income | -$87.10 mln | ||
Q4 Gross Margin | 37.70% | ||
Q4 Operating Income | -$74.50 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductors peer group is "buy"
Wall Street's median 12-month price target for Sequans Communications SA is $17.00, about 380.2% above its February 9 closing price of $3.54
Press Release: ID:nNFCbkLhGC
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)