Yahoo Finance EchoStar Corporation (NASDAQ:SATS) Just Reported, And Analysts Assigned A US$20.13 Price Target
It's been a mediocre week for EchoStar Corporation (NASDAQ:SATS) shareholders, with the stock dropping 12% to US$15.31 in the week since its latest quarterly results. Revenues were in line with expectations, at US$4.0b, while statutory losses ballooned to US$0.40 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for EchoStar
Following the recent earnings report, the consensus from eight analysts covering EchoStar is for revenues of US$16.0b in 2024. This implies a discernible 4.1% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 85% to US$1.17. Before this earnings announcement, the analysts had been modelling revenues of US$16.2b and losses of US$1.61 per share in 2024. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very promising decrease in losses per share in particular.
The consensus price target fell 6.9% to US$20.13despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on EchoStar, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$12.00 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EchoStar's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 5.4% annualised decline to the end of 2024. That is a notable change from historical growth of 54% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.3% per year. It's pretty clear that EchoStar's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that EchoStar's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for EchoStar going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for EchoStar that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
