EchoStar adds 255K subs in Q3, but revenues fall below estimates
EchoStar Communications Corp. ended the third quarter with 11.71 million subs, after adding 255,000 net new customers during the period.
EchoStar also posted Q3 revenue of $2.12 billion, up 14 percent year-over-year, and a profit of $209 million (46 cents per share), versus $102 million (22 cents per share).
Revenues were slightly below consensus estimates of $2.16 million. Citigroup Investment Research, for example, estimated revenues of $2.16 million. But EchoStar's gross sub adds of 900,000 were above Citgroup's expected 835,000.
Despite that growth, Citigroup said it expects EchoStar shares to trade lower on "weak financials and high churn." For the quarter, EchoStar reported churn of 1.86 percent, above the Citigroup forecast of 1.69 percent.
EchoStar shares were down 30 cents (1.11 percent) to $26.62 each in early trading Tuesday.