Sierra Wireless reported outstanding first quarter results today and I think the share price is going to make some huge gains in the next few months.

Sierra Wireless reported revenues of 85.43 million which was a huge jump sequentially and almost double what they made in the corresponding quarter last year. Sierra came in with earnings of 0.20 per diluted share which doubled what they earned sequentially and year over year. They also posted impressive guidance for the second quarter: revenues of 92 million and earnings of 0.21.

The revenue and earnings growth should continue in the future. Sierra Wireless started launching new products in the first quarter and they expect their acquisition of Airlink Communications to significantly expand their high gross margin product lines.

I think the share price of Sierra Wireless if headed nowhere but up and I think it would be foolish to consider selling right now. I would recommend holding your shares and potentially even buying more. The stock price was trading over nineteen dollars after hours but I think the stock price could rise to twenty five dollars or higher before the next earnings report.

Disclosure: I currently own shares of SWIR.