Echostar (NASDAQ:ECHO) Posts Quarterly Earnings Results, Beats Estimates By $24.14 EPS

Key Points

• EchoStar reported quarterly EPS of $24.12, dramatically exceeding the consensus estimate of a $0.02 loss by $24.14. Revenue was $3.58 billion, slightly below the $3.59 billion analyst estimate.
• The company’s financial profile remained strained, with a 97.56% negative net margin, a 0.30 current ratio, and a 3.17 debt-to-equity ratio. Shares opened at $84.09, well below their 52-week high of $147.25.
• Analysts maintain a generally positive view, giving EchoStar a consensus rating of “Moderate Buy” and an average price target of $136.25. CEO Hamid Akhavan also sold 52,586 shares under a pre-arranged Rule 10b5-1 trading plan.

Echostar (NASDAQ:ECHO - Get Free Report) posted its quarterly earnings data on Monday. The company reported $24.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.02) by $24.14, FiscalAI reports. The company had revenue of $3.58 billion for the quarter, compared to the consensus estimate of $3.59 billion. Echostar had a negative net margin of 97.56% and a negative return on equity of 4.80%.

Echostar Stock Performance

Shares of ECHO stock opened at $84.09 on Monday. The firm has a market capitalization of $24.37 billion, a price-to-earnings ratio of -1.68 and a beta of 1.03. The company has a quick ratio of 0.27, a current ratio of 0.30 and a debt-to-equity ratio of 3.17. Echostar has a one year low of $26.04 and a one year high of $147.25.

Wall Street Analyst Weigh In

Several brokerages recently commented on ECHO. New Street Research set a $165.00 target price on shares of Echostar in a report on Monday, June 15th. Citigroup started coverage on shares of Echostar in a research report on Tuesday, July 7th. They set a "buy" rating and a $126.00 price target on the stock. Raymond James Financial upgraded shares of Echostar from a "market perform" rating to a "strong-buy" rating and set a $115.00 price objective for the company in a research note on Friday, July 17th. Williams Trading set a $155.00 price objective on Echostar in a report on Monday, May 18th. Finally, Wall Street Zen raised Echostar from a "sell" rating to a "hold" rating in a research report on Saturday, May 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $136.25.

Insider Activity at Echostar

In other news, CEO Hamid Akhavan sold 52,586 shares of the business's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $121.00, for a total transaction of $6,362,906.00. Following the transaction, the chief executive officer directly owned 865,633 shares in the company, valued at $104,741,593. The trade was a 5.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 55.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Echostar

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Hollencrest Capital Management acquired a new position in Echostar during the fourth quarter worth approximately $26,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Echostar during the 3rd quarter worth approximately $38,000. Kemnay Advisory Services Inc. acquired a new position in shares of Echostar during the 4th quarter worth approximately $53,000. Kestra Advisory Services LLC acquired a new position in shares of Echostar during the 4th quarter worth approximately $61,000. Finally, Lazard Asset Management LLC bought a new stake in Echostar in the 2nd quarter valued at $73,000. Institutional investors own 33.62% of the company's stock.

About Echostar

EchoStar Corporation is a communications company that provides satellite and wireless services, video distribution, and broadband connectivity solutions. Its business has historically been centered on satellite technology and related services, serving customers through a range of connectivity and network offerings.

The company operates through several segments that support pay-TV, enterprise, government, and consumer communications needs. Its services and technologies have included satellite television distribution, broadband satellite access, network infrastructure, and wireless communications capabilities.

EchoStar was founded in 1980 and has long been associated with satellite communications in the United States.

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