The 10-second takeaway
For the quarter ended Dec. 31 (Q4), EchoStar missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share increased.
Gross margins shrank, operating margins increased, net margins grew.
EchoStar reported revenue of $786.0 million. The two analysts polled by S&P Capital IQ predicted sales of $805.7 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $834.2 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 $0.29. The three earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS were $0.29 for Q4 against -$0.15 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 32.6%, 110 basis points worse than the prior-year quarter. Operating margin was 4.3%, 10 basis points better than the prior-year quarter. Net margin was 3.3%, 480 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $804.8 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $3.30 billion. The average EPS estimate is $0.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 154 members out of 161 rating the stock outperform, and seven members rating it underperform. Among 66 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 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 $43.50.
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