Sequans Communications (NYSE:SQNS) Releases Quarterly Earnings Results, Beats Estimates By $0.50 EPS

Sequans Communications (NYSE:SQNS) released its quarterly earnings results on Tuesday. The semiconductor company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.54) by $0.50, FiscalAI reports. The company had revenue of $9.09 million during the quarter, compared to analysts’ expectations of $8.97 million. Sequans Communications had a negative return on equity of 65.85% and a negative net margin of 516.47%.

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 Trading Down 2.7%

Shares of SQNS stock opened at $2.67 on Thursday. The stock has a 50-day simple moving average of $2.75 and a 200 day simple moving average of $3.16. The stock has a market capitalization of $40.07 million, a P/E ratio of -0.26 and a beta of 0.84. Sequans Communications has a fifty-two week low of $2.31 and a fifty-two week high of $6.98. 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

SQNS has been the topic of several research analyst reports. B. Riley Financial lowered their target price on shares of Sequans Communications from $8.00 to $5.00 and set a “buy” rating on the stock in a research note on Monday, August 24th. Weiss Ratings cut shares of Sequans Communications from a “sell (d)” rating to a “sell (e+)” rating in a report on Tuesday, August 11th. Wall Street Zen upgraded shares of Sequans Communications from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Roth Capital lowered their price objective on shares of Sequans Communications to $15.00 and set a “buy” rating on the stock in a research note on Thursday, October 8th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target 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.