Analyst Estimates: Here's What Brokers Think Of EchoStar Corporation (NASDAQ:SATS) After Its Third-Quarter Report
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It's been a sad week for EchoStar Corporation (NASDAQ:SATS), who've watched their investment drop 16% to US$21.99 in the week since the company reported its third-quarter result. The statutory results were not great - while revenues of US$3.9b were in line with expectations,EchoStar lost US$0.52 a share in the process. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for EchoStar
Following the recent earnings report, the consensus from eight analysts covering EchoStar is for revenues of US$15.7b in 2025. This implies a perceptible 2.3% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 65% to US$3.19. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$15.6b and losses of US$2.96 per share in 2025. So it's pretty clear consensus is mixed on EchoStar after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.
The consensus price target held steady at US$24.17, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic EchoStar analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.9% annualised decline to the end of 2025. That is a notable change from historical growth of 48% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EchoStar is expected to lag the wider industry.