Satellite communications company EchoStar (NASDAQGS:SATS) will be reporting earnings this Friday before market hours. Here’s what to expect.
EchoStar met analysts’ revenue expectations last quarter, reporting revenues of $3.87 billion, down 3.6% year on year. It was a very strong 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 3.7% year on year to $3.81 billion, improving from the 9.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.04 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. IMAX delivered year-on-year revenue growth of 3.1%, beating analysts’ expectations by 1%, and Interpublic Group reported a revenue decline of 6.6%, in line with consensus estimates. IMAX traded down 7.5% following the results while Interpublic Group was up 10.6%.
Read our full analysis of IMAX’s results here and Interpublic Group’s results here.
Investors in the media & entertainment segment have had steady hands going into earnings, with share prices flat over the last month. EchoStar is up 16.4% during the same time and is heading into earnings with an average analyst price target of $40.36 (compared to the current share price of $33).
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