What Drove A 14% Surge In EchoStar Corp’s Stock Price In The Last One Month?

EchoStar Corporation (NASDAQ:SATS), a worldwide provider of satellite communication solutions and Internet services through its Hughes Network Systems and EchoStar Satellite Services business segments, has seen its stock price rise by close to 14% over the last month, driven by stronger Q3 2019 results that beat estimates on both revenues and earnings. The stock has reacted strongly, since the company actually saw a major sell-off post its Q2 results, in which it missed estimates by a huge margin. However, revenue growth over Q3 was stronger-than-expected at about 3.5%, beating consensus estimates by about 1.5%. The company has topped consensus revenue estimates two times over the last four quarters. The company reported a loss of $0.21/share in Q3 2019 as against a profit of $0.12/share in the year-ago period. However, it has performed much better than analysts’ expectation of a loss of $0.75/share for Q3.

We ‘step back’ from these recent swings to review EchoStar Corp’s performance over the last few years, as a context for what might come next. Our Interactive dashboard Why Did EchoStar Corp [SATS] Stock Rally 14% Over The Last Month And What To Expect Going Forward? reviews the near term reasons and the big picture.

A closer look at EchoStar’s Total Revenues over the last few years and the outlook

Total Revenues for EchoStar increased from $1.89 billion in 2017 to $2.09 billion in 2018; an increase of 10.9%.

This compares with Total Revenue growth of:

  • -1.46% in 2015
  • -2.08% in 2016
  • 4.14% in 2017

We expect Total Revenues to decrease by 7.24% in 2019.

A closer look at EchoStar’s Total Expenses over the last few years and the outlook

Total Expense for EchoStar significantly increased from $1.78 billion in 2017 to $2.10 billion in 2018; an increase of 17.6%.

This compares with Total Expense decrease of:

  • 0.81% in 2015;
  • 6.77% in 2016; and
  • increase of 11.98% in 2017 due to higher depreciation, impairment, and interest cost

We expect Total Expense to decrease by 6.4% in 2019.

How Does EchoStar’s Revenue Growth compare with rivals?

For more information on how EchoStar Corp’s Revenue Growth compares with Viasat, T-Mobile, and AT&T, view our interactive dashboard analysis.

How has EchoStar’s EBT trended?

EBT for EchoStar decreased dramatically by 108% from $101 million in 2017 to -$7.96 million in 2018, mainly due to a sharp rise in interest and impairment cost, loss on investment, and equity losses of unconsolidated affiliates.

We expect EBT to further decrease 214% to -$25 Mil in 2019, due to a sharper decline expected in revenue compared to total expenses.

How has EchoStar’s Net Income and EPS trended?

For more details on EchoStar Corp’s Net Income and EPS, view our interactive dashboard analysis.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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