Satellite communications company EchoStar (NASDAQGS:SATS) will be reporting earnings tomorrow before market hours. Here’s what to expect.
EchoStar beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $3.97 billion, down 4.7% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates.
Is EchoStar a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting EchoStar’s revenue to decline 3.8% year on year to $3.86 billion, improving from the 8.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.87 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. EchoStar has missed Wall Street’s revenue estimates three times over the last two years.
Looking at EchoStar’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 2.9%, and Sinclair reported a revenue decline of 2.8%, in line with consensus estimates. IMAX traded down 3.2% following the results.
Read our full analysis of IMAX’s results here and Sinclair’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 4.1% on average over the last month. EchoStar’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $32 (compared to the current share price of $23.55).
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