Inmarsat shares surge on earnings
SATELLITE communications firm Inmarsat posted a better-than-expected 18.4 per cent rise in third-quarter earnings yesterday, and said it was on track for the year, sending its shares to a four-year high.
The company, whose satellites provide phone and broadband services to ships, aircraft and remote locations worldwide, posted earnings of $133mn, helped by cost controls. Revenue in the three months to end-September rose 8.7 per cent to $176.7m, the firm said, reflecting strong demand in the aeronautical sector and maritime broadband services.
Chairman and chief executive Andrew Sukawaty said: “We are continuing to achieve growth in all our MSS (mobile satellite services) markets despite the economic downturn. We are well positioned to deliver on our targets for the full year.”
Investec analyst Jonathan Groocock, who rates the stock a “buy”, said tight cost control had helped the firm beat earnings estimates, while reduced capital spending had boosted free cash flow — up 90.6 per cent year-on-year.“Excellent set of figures, they’ve completely blown away consensus earnings in the quarter,” he said. Analysts expect the firm to post a 5.2 per cent rise in full-year revenue of $1.05bn