EchoStar Shares Gain On Equipment, Broadband Services Driven Q2 Earnings Beat

EchoStar Corp SATS reported second-quarter FY21 revenue growth of 8.8% year-on-year to $499.8 million, beating the analyst consensus of $479.2 million.
Services and other revenue increased 3.4% Y/Y to $431.3 million. Equipment revenue climbed 61.6% Y/Y to $68.6 million.
Higher equipment sales of $26.1 million to domestic and international enterprise customers and higher sales of broadband services of $12.4 million to consumer customers drove the revenue growth.
Hughes revenue rose 8.6% Y/Y to $492.3 million. EchoStar Satellite Services revenue increased 2.5% to $4.3 million. Corporate and Other revenue expanded 54.9% to $3.3 million.
Total Hughes broadband subscribers were 1.54 million as of Jun. 30. U.S. subscribers decreased by 20,000 to 1.14 million. In Latin America, subscribers increased by 9,000 to 0.39 million.
EPS of $0.41 beat the analyst consensus of $0.07.
Adjusted EBITDA increased 16.0%, while Adjusted EBITDA margin expanded 233 bps to 37.4%.
It held $1.6 billion in cash and equivalents. The company generated $308.6 million in operating cash flow during the six months ended Jun. 30.
It repurchased 2.4 million shares in Q2.
Price action: SATS shares traded higher by 4.95% at $23.875 on the last check Tuesday.

Momentum58.66

Growth10.72

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Value20.78

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