Benzinga | Aug 3, 2021 02:14PM EDT

EchoStar Shares Gain On Equipment, Broadband Services Driven Q2 Earnings Beat

* EchoStar Corp (NASDAQ:SATS) reported second-quarter FY21 revenue growth of 8.8% year-on-year to $499.8 million, beating the analyst consensus of $479.2 million.

* Services and other revenue increased 3.4% Y/Y to $431.3 million. Equipment revenue climbed 61.6% Y/Y to $68.6 million.

* Higher equipment sales of $26.1 million to domestic and international enterprise customers and higher sales of broadband services of $12.4 million to consumer customers drove the revenue growth.

* Hughes revenue rose 8.6% Y/Y to $492.3 million. EchoStar Satellite Services revenue increased 2.5% to $4.3 million. Corporate and Other revenue expanded 54.9% to $3.3 million.

* Total Hughes broadband subscribers were 1.54 million as of Jun. 30. U.S. subscribers decreased by 20,000 to 1.14 million. In Latin America, subscribers increased by 9,000 to 0.39 million.

* EPS of $0.41 beat the analyst consensus of $0.07.

* Adjusted EBITDA increased 16.0%, while Adjusted EBITDA margin expanded 233 bps to 37.4%.

* It held $1.6 billion in cash and equivalents. The company generated $308.6 million in operating cash flow during the six months ended Jun. 30.

* It repurchased 2.4 million shares in Q2.

* Price action: SATS shares traded higher by 4.95% at $23.875 on the last check Tuesday.