Sequans Communications (NYSE:SQNS) Releases Quarterly Earnings Results, Beats Expectations By $0.44 EPS

Sequans Communications (NYSE:SQNS) released its quarterly earnings data on Tuesday. The semiconductor company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.48) by $0.44, FiscalAI reports. Sequans Communications had a negative return on equity of 54.51% and a negative net margin of 637.49%. The company had revenue of $9.09 million for the quarter, compared to analyst estimates of $9.04 million.

Here are the key takeaways from Sequans Communications’ conference call:

• Third-quarter revenue rose to $9.1 million, up 22% sequentially and 183% year over year, driven mainly by product sales. Management guided for fourth-quarter revenue of $9.5 million to $11 million, excluding any major licensing contribution.
• Sequans ended the quarter with approximately $40 million in cash and short-term deposits after selling its remaining Bitcoin and redeeming its convertible debt. The company also reported lower operating expenses and a sharply reduced net loss, although the Bitcoin sale contributed a $6.2 million gain.
• The IoT design-win pipeline continues to mature, with backlog visibility extending into the second half of 2027 and more than $180 million of the pipeline expected to be in mass production by year-end. Management also cited growing traction for its Iris RF product in defense and drones, including initial production shipments expected in the fourth quarter.
• Management highlighted meaningful long-term opportunities in 5G eRedCap and licensing, but eRedCap revenue is not expected until 2028 and licensing timing remains uncertain. Several licensing opportunities totaling more than $75 million are under discussion, though the company largely excluded major deals from its fourth-quarter guidance.
• Semiconductor supply and cost pressures remain a risk, particularly volatile memory pricing and constrained mature-node wafer capacity at TSMC in 2027. Sequans expects fourth-quarter gross margin to remain under pressure and is still working to secure enough wafer capacity to meet its projected growth.

Sequans Communications Price Performance

NYSE SQNS traded up $0.30 during trading hours on Tuesday, reaching $2.78. 46,148 shares of the company’s stock were exchanged, compared to its average volume of 133,247. The firm has a fifty day moving average of $2.76 and a 200-day moving average of $3.19. Sequans Communications has a one year low of $2.31 and a one year high of $6.98. The stock has a market cap of $41.68 million, a PE ratio of -0.27 and a beta of 0.84. The company has a current ratio of 1.39, a quick ratio of 1.27 and a debt-to-equity ratio of 0.03.

Analyst Upgrades and Downgrades

Several analysts recently commented on SQNS shares. B. Riley Financial decreased their price target on Sequans Communications from $8.00 to $5.00 and set a “buy” rating on the stock in a research note on Monday, August 24th. Wall Street Zen upgraded Sequans Communications from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Roth Capital cut their price objective on Sequans Communications to $15.00 and set a “buy” rating for the company in a report on Thursday, October 8th. Zacks Research upgraded shares of Sequans Communications from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 7th. Finally, Weiss Ratings downgraded shares of Sequans Communications from a “sell (d)” rating to a “sell (e+)” rating in a research note on Tuesday, August 11th. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Sequans Communications presently has an average rating of “Hold” and an average target price of $12.67.

About Sequans Communications

Sequans Communications SA is a fabless semiconductor company that develops cellular connectivity solutions for the Internet of Things (IoT). Its technology is designed to connect devices and equipment to 4G and 5G networks, supporting applications such as asset tracking, smart metering, industrial monitoring, security systems, and connected consumer products.

The company offers chipsets, modules, and related software for several cellular IoT applications. Its product portfolio has included solutions for LTE-M and NB-IoT, which are intended for low-power, wide-area connectivity, as well as products supporting broader 4G and 5G applications.