KVH Industries (NASDAQ:KVHI) Announces Earnings Results, Misses Expectations By $0.03 EPS

KVH Industries (NASDAQ:KVHI) released its earnings results on Thursday. The communications equipment provider reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.03), FiscalAI reports. The company had revenue of $33.72 million during the quarter, compared to analyst estimates of $33.70 million. KVH Industries had a negative return on equity of 0.76% and a negative net margin of 4.68%.

Here are the key takeaways from KVH Industries’ conference call:

• Revenue and recurring service growth accelerated: Q2 revenue rose 27% year over year to $33.7 million, while service revenue increased 29% to $29.7 million. Subscribing vessels grew 11% sequentially to approximately 10,700, with 18% year-to-date growth.
• KVH continued expanding its LEO connectivity business, with Starlink remaining the dominant offering and 55% of airtime revenue now coming from LEO services. New multi-network plans combining Starlink, OneWeb, and VSAT are intended to improve customer flexibility and network redundancy.
• Strategic initiatives broadened the company’s addressable market, including roughly 1,600 land-based Starlink sites, beta trials of the Link streaming service, early managed IT and cybersecurity engagements, expanded international sales coverage, and a new Fort Lauderdale retail location.
• Profitability and cash generation improved sequentially, with service gross profit rising to $10.6 million, gross margin reaching 36%, and adjusted EBITDA increasing to $3.6 million from $2.8 million. Management expects GEO bandwidth obligations to be largely completed by year-end, reducing exposure to declining VSAT margins.
• Terminal shipments declined from a record 3,100 in Q1 to approximately 2,500 in Q2, although management characterized 2,000–3,000 units per quarter as a sustainable forward range. The company expects to complete its remaining $15 million share-repurchase authorization during the current month, which will reduce further buyback support after the program ends.

KVH Industries Stock Down 3.1%

Shares of KVH Industries stock traded down $0.26 on Friday, reaching $8.03. 240,526 shares of the stock were exchanged, compared to its average volume of 205,410. The business has a 50 day moving average price of $8.94 and a two-hundred day moving average price of $8.52. The firm has a market capitalization of $156.59 million, a price-to-earnings ratio of -26.77 and a beta of 0.44. KVH Industries has a twelve month low of $5.09 and a twelve month high of $13.00.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Wall Street Zen cut shares of KVH Industries from a “buy” rating to a “hold” rating in a report on Saturday, June 13th. Weiss Ratings reissued a “sell (d-)” rating on shares of KVH Industries in a report on Wednesday, June 24th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock has an average rating of “Sell”.

Insiders Place Their Bets

In other KVH Industries news, major shareholder Bradley Louis Radoff sold 35,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $11.20, for a total transaction of $392,000.00. Following the completion of the transaction, the insider directly owned 290,000 shares of the company’s stock, valued at approximately $3,248,000. This trade represents a 10.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In the last 90 days, insiders have sold 39,092 shares of company stock valued at $423,099. 21.40% of the stock is currently owned by corporate insiders.

Institutional Trading of KVH Industries

Several large investors have recently made changes to their positions in the business. HRT Financial LP purchased a new position in shares of KVH Industries during the fourth quarter worth $70,000. OMERS ADMINISTRATION Corp purchased a new stake in KVH Industries in the fourth quarter valued at $86,000. Virtu Financial LLC purchased a new stake in KVH Industries in the fourth quarter valued at $102,000. NewEdge Advisors LLC acquired a new stake in KVH Industries during the 3rd quarter worth about $90,000. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in KVH Industries during the 3rd quarter worth about $113,000. 73.66% of the stock is owned by hedge funds and other institutional investors.

About KVH Industries

KVH Industries, Inc develops and manufactures mobile connectivity, inertial navigation, and stabilization systems for maritime, land mobile and defense markets. Its Satellite Communications Group delivers a range of mobile VSAT and broadband systems under the TracPhone and TracNet brands, offering high-speed data, voice and TV programming for commercial and leisure vessels. The company pairs its hardware offerings with the OneCare global network and service platform, providing 24/7 support and coverage across major satellite constellations.

The Inertial Systems Group at KVH produces fiber-optic and hemispherical resonator gyros, inertial measurement units (IMUs) and related inertial navigation products for aerospace, unmanned platforms and precision stabilization applications.