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

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

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 Performance

KVHI traded down $0.26 during trading on Friday, hitting $8.03. 240,526 shares of the stock were exchanged, compared to its average volume of 205,410. The firm has a 50 day simple moving average of $8.94 and a 200 day simple moving average of $8.52. The firm has a market cap of $156.59 million, a price-to-earnings ratio of -26.77 and a beta of 0.44. KVH Industries has a 1 year low of $5.09 and a 1 year high of $13.00.

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of KVH Industries in a research note on Wednesday, June 24th. Wall Street Zen cut shares of KVH Industries from a “buy” rating to a “hold” rating in a research report on Saturday, June 13th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, the company currently has an average rating of “Sell”.

Insider Buying and Selling at KVH Industries

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

Hedge Funds Weigh In On KVH Industries

Several institutional investors have recently made changes to their positions in KVHI. Bridgeway Capital Management LLC increased its holdings in KVH Industries by 126.9% during the fourth quarter. Bridgeway Capital Management LLC now owns 145,284 shares of the communications equipment provider’s stock valued at $1,013,000 after buying an additional 81,252 shares during the period. O Shaughnessy Asset Management LLC purchased a new stake in KVH Industries during the fourth quarter worth $521,000. Mink Brook Asset Management LLC lifted its holdings in KVH Industries by 84.5% during the second quarter. Mink Brook Asset Management LLC now owns 153,683 shares of the communications equipment provider’s stock worth $819,000 after buying an additional 70,382 shares during the period. Jane Street Group LLC bought a new stake in KVH Industries during the 4th quarter valued at $308,000. Finally, Marshall Wace LLP bought a new stake in KVH Industries during the 4th quarter valued at $239,000. Hedge funds and other institutional investors own 73.66% of the company’s stock.

KVH Industries Company Profile

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.