Turnaround At Sierra Wireless

SWIR’s new management is much more focused on profitability versus growth.
Growth nevertheless didn’t disappoint and is boosted by secular tailwinds from IoT and 5G, which are still in the early innings.
Cost-cutting has really helped, and there will be a good deal of operational leverage going forward which is likely to produce positive cash flow.
Component shortages and pricing remain a constraint and a risk going forward while production capacity has been expanded.
Much of the turnaround is already priced in; the shares are not a screaming buy.
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