Inmarsat Jumps as Earnings Top Estimates on Maritime Sales Gains
Inmarsat Plc (ISAT) jumped the most in more than three years after the biggest provider of satellite services to the maritime industry posted second-quarter earnings that beat analyst estimates and reiterated its sales forecasts.
The stock rose as much as 14 percent to 552.5 pence, the biggest intraday gain since May 2009, and traded up 8.7 percent as of 9:20 a.m. in London trading, giving the company a market value of 2.36 billion pounds ($3.67 billion).
Revenue from Inmarsat’s core mobile satellite services, or MSS, rose 4.2 percent to $189 million in the second quarter, the London-based company said. Total maritime revenue rose 13 percent in the first six months, driven by a 22 percent jump in maritime data services. Growth in maritime data revenue resulted mainly from pricing initiatives such as the elimination of volume discounts, it said.
“Inmarsat second-quarter results are above consensus expectation driven by maritime and MSS which returned to growth,” Torsten Achtmann, an analyst at JPMorgan Chase & Co., wrote in a note today.
The London-based company said second-quarter revenue fell to $329 million from $359 million a year earlier and earnings before interest, tax, depreciation and amortization declined to $176 million from $223 million. Analysts had expected revenue of $310 million and Ebitda of $161 million, according to a Bloomberg survey of three analysts.
“We’ve made solid progress in our underlying numbers and we’re confident that we will deliver on our guidance,” Chief Executive Officer Rupert Pearce said on a conference call today. “Results show we have returned our core MSS business to growth.”
The company said on March 6 it expects global MSS revenue to rise 0 percent to 2 percent per year in 2012 and 2013.
To contact the reporter on this story: Chiara Remondini in Milan at email@example.com
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