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Intelsat Trades Higher After Reporting Q1 Sales Beat, EPS Loss

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Intelsat Trades Higher After Reporting Q1 Sales Beat, EPS Loss
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Satellite network operator Intelsat SA (NYSE: 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. 

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Posted-In: satellite Stephen SpenglerEarnings News Best of Benzinga

 

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