Satellite network operator Intelsat SA I, a leader in integrated satellite communications, announced its first-quarter results Tuesday before the open.
What Happened
The company reported total revenue of $543 million against a $520.4-million estimate. The revenue figure is $518 million excluding the effects of the new ASC 606 revenue recognition rules, Intelsat said. The satellite provider reported a net loss of $66.8 million. Its adjusted EBITDA was $418.6 million or $392.3 excluding ASC 606.
Intelsat CEO Stephen Spengler announced new broadband contracts for Intelsat EpicNG satellites in Africa and Asia and a hosted payload program for the U.S. government. He has also announced the launch of Intelsat 38 and Horizons 3e.
Why It's Important
Intelsat failed to beat estimates, as it reported a loss of 56 cents per share against a consensus estimate of a 39-cent loss. Despite the miss, the stock rallied on the event and was up more than 16 percent at $11.37 at the time of publication.
The launch of the Intelsat 38 and Horizons 3e satellites should deliver capital expenditure efficiencies while providing for revenue continuity and high-performance inventory for growth, Spengler said in a statement.
What's Next
"We are leveraging our scale and global presence to drive returns on our network, making solid progress on our operating priorities for 2018," Spengler said.
Intelsat introduced a shared services platform during the quarter for media customers that's expected to drive incremental value in Intelsat's "video neighborhood" in central and eastern Europe, the CEO said.
Related Links:
Globalstar's Portfolio Has Potential, But Monetization Is Key, Morgan Stanley Says
ViaSat's Potential Is Already Reflected In Its Valuation, Barclays Says In Downgrade
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
