Sequans Communications (NYSE:SQNS) Issues Earnings Results

Sequans Communications (NYSE:SQNS) issued its quarterly earnings data on Tuesday. The semiconductor company reported ($0.04) EPS for the quarter, beating analysts’ consensus estimates 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 firm 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

SQNS stock opened at $2.85 on Wednesday. The company’s 50-day moving average price is $2.75 and its two-hundred day moving average price is $3.17. The firm has a market cap of $42.62 million, a P/E ratio of -0.27 and a beta of 0.84. The company has a quick ratio of 1.27, a current ratio of 1.39 and a debt-to-equity ratio of 0.03. Sequans Communications has a 12 month low of $2.31 and a 12 month high of $6.98.

Analysts Set New Price Targets

SQNS has been the topic of a number of recent research reports. Zacks Research raised shares of Sequans Communications from a “strong sell” rating to a “hold” rating in a research report on Tuesday, July 7th. Weiss Ratings downgraded 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 raised Sequans Communications from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Roth Capital lowered their price objective on Sequans Communications to $15.00 and set a “buy” rating on the stock in a research note on Thursday, October 8th. Finally, B. Riley Financial dropped their price objective on Sequans Communications from $8.00 to $5.00 and set a “buy” rating for the company in a report on Monday, August 24th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently 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.