The 10-second takeaway
For the quarter ended Sep. 30 (Q3), EchoStar missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded.
Margins grew across the board.
EchoStar recorded revenue of $764.7 million. The one analyst polled by S&P Capital IQ predicted revenue of $814.6 million on the same basis. GAAP reported sales were 11% lower than the prior-year quarter's $863.2 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 $0.26. The two earnings estimates compiled by S&P Capital IQ anticipated $0.12 per share. GAAP EPS were $0.26 for Q3 compared to -$0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.3%, 60 basis points better than the prior-year quarter. Operating margin was 3.1%, 50 basis points better than the prior-year quarter. Net margin was 2.9%, 510 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $824.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $3.21 billion. The average EPS estimate is $0.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 152 members out of 159 rating the stock outperform, and seven members rating it underperform. Among 59 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give EchoStar a green thumbs-up, and one give 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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Gen Y Blogs