The 10-second takeaway
For the quarter ended June 30 (Q2), EchoStar beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins increased, operating margins shrank, net margins improved.
EchoStar booked revenue of $806.0 million. The one analyst polled by S&P Capital IQ predicted a top line of $789.1 million on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $584.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The two earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.41 for Q2 were 95% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.4%, 360 basis points better than the prior-year quarter. Operating margin was 5.7%, 210 basis points worse than the prior-year quarter. Net margin was 4.4%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $821.3 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $3.21 billion. The average EPS estimate is $1.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 151 members out of 158 rating the stock outperform, and seven members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give EchoStar a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EchoStar is buy, with an average price target of $43.00.
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