EchoStar Q3 Earnings Lag Estimates on Lower Revenues, Stock Down 13%

Core Viewpoint - EchoStar Corporation (SATS) reported a wider non-GAAP loss in Q3 2024 compared to the previous year, missing consensus estimates significantly [1][2]. Financial Performance - The company reported revenues of $3.9 billion for the quarter, a decrease of 5% year over year, and missed the consensus mark by 1.5% [2]. - The non-GAAP loss was 52 cents per share, compared to a loss of 51 cents in the prior-year quarter, which was 85.7% wider than the Zacks Consensus Estimate of a loss of 28 cents [1][2]. - Operating income before depreciation and amortization (OIBDA) was $316.7 million, down from $365.9 million in the year-ago quarter [8]. Subscriber Metrics - Pay-TV segment revenues decreased by 6.7% year over year to $2.62 billion, with a net decline of approximately 43,000 subscribers, an improvement from the loss of 64,000 subscribers in the previous year's quarter [3][4]. - The total number of pay-TV subscribers is now 8.03 million, including 5.89 million DISH TV and 2.14 million SLING TV customers [4]. - Retail Wireless ended the quarter with 6.98 million subscribers, reporting net sales of $896 million, a slight increase of 0.5% year over year [5]. - Broadband and Satellite Services revenues were $386.7 million, down from $413 million in the prior-year quarter, with a net loss of 43,000 subscribers [6]. Segment Performance - The Retail Wireless segment experienced a net decrease of nearly 297,000 subscribers, compared to a decline of 225,000 in the year-ago period, attributed to reduced churn rates [5]. - OIBDA for Broadband and Satellite Services was $77.5 million, down 31.4% year over year, while OIBDA loss for Retail Wireless improved to $90.8 million from a loss of $105.6 million in the prior-year period [9]. - Net sales from 5G Network Deployment increased to $43.2 million from $29.9 million a year ago [7]. Balance Sheet - As of September 30, 2024, SATS had total cash and cash equivalents of $622.6 million, up from $419.2 million as of June 30, 2024 [10]. - For the nine months ended September 2024, SATS generated $1.2 billion of cash from operating activities, compared to $2.02 billion in the year-ago period [10].