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

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

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 Stock Performance

Sequans Communications stock traded up $0.30 during trading hours on Tuesday, hitting $2.78. The stock had a trading volume of 46,148 shares, compared to its average volume of 133,247. Sequans Communications has a fifty-two week low of $2.31 and a fifty-two week high of $6.98. The company has a market cap of $41.68 million, a PE ratio of -0.27 and a beta of 0.84. The company has a 50-day moving average of $2.76 and a two-hundred day moving average of $3.19. The company has a quick ratio of 1.27, a current ratio of 1.39 and a debt-to-equity ratio of 0.03.

Analyst Upgrades and Downgrades

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

Sequans Communications Company Profile

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.