EchoStar Misses on Revenues but Beats on EPS

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EchoStar (NAS: SATS) reported earnings on Nov. 6. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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The article EchoStar Misses on Revenues but Beats on EPS originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.  Gen Y Blogs

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