Telesat (TSAT) Tops Q2 Earnings Estimates

Company Performance - Telesat reported quarterly earnings of $1 per share, significantly beating the Zacks Consensus Estimate of a loss of $0.69 per share, and showing improvement from a loss of $2.87 per share a year ago, resulting in an earnings surprise of +244.93% [1] - The company posted revenues of $76.69 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 2.99% and decreased from year-ago revenues of $111.41 million [2] - Over the last four quarters, Telesat has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Telesat shares have increased approximately 47.1% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.11 on revenues of $65.31 million, and for the current fiscal year, it is -$2.29 on revenues of $298.96 million [7] - The estimate revisions trend for Telesat was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Satellite and Communication industry, to which Telesat belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which investors can track [5]