KVH Industries (NASDAQ:KVHI) Issues Quarterly Earnings Results

KVH Industries (NASDAQ:KVHI) posted its quarterly earnings data on Wednesday. The communications equipment provider reported $0.03 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.05, Zacks reports. The firm had revenue of $32.32 million during the quarter, compared to the consensus estimate of $30.56 million. KVH Industries had a negative return on equity of 2.41% and a negative net margin of 6.65%.

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

• Record shipments — the company shipped approximately 3,100 units in Q1 (a ~70% increase over the prior high), which management says should drive activation growth though part of the surge may reflect seasonality.
• Subscriber and mix progress — subscribing vessels rose to about 9,600 (up 7% QoQ, 30% YoY) and LEO services now represent over 45% of airtime revenue, approaching parity with legacy VSAT.
• Cash and near-term financials — ending cash declined to $59.2 million (down ~$10.8M) largely due to a $16M installment payment to Starlink for bulk data; adjusted EBITDA was $2.8M and Q1 capex was $2.6M.
• Product and geographic expansion — KVH is trialing managed IT, expanding its Link content platform with live-stream plans, exploring an additional LEO service, and pursuing growth in India and Latin America with incremental, budgeted sales/marketing costs.

KVH Industries Price Performance

NASDAQ KVHI traded up $1.06 on Wednesday, hitting $10.49. 391,690 shares of the company’s stock were exchanged, compared to its average volume of 124,640. The firm’s 50-day moving average price is $8.36 and its two-hundred day moving average price is $7.10. KVH Industries has a fifty-two week low of $4.93 and a fifty-two week high of $11.10. The firm has a market cap of $204.45 million, a price-to-earnings ratio of -27.61 and a beta of 0.43.

Insider Transactions at KVH Industries

In other KVH Industries news, major shareholder Bradley Louis Radoff bought 30,000 shares of the company’s stock in a transaction on Thursday, February 12th. The shares were bought at an average price of $6.26 per share, for a total transaction of $187,800.00. Following the transaction, the insider owned 2,180,000 shares of the company’s stock, valued at approximately $13,646,800. This trade represents a 1.40% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 21.10% of the company’s stock.

Hedge Funds Weigh In On KVH Industries

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Orion Porfolio Solutions LLC increased its position in KVH Industries by 3.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 68,829 shares of the communications equipment provider’s stock worth $367,000 after purchasing an additional 2,222 shares during the period. State Street Corp grew its holdings in shares of KVH Industries by 4.4% in the 4th quarter. State Street Corp now owns 66,018 shares of the communications equipment provider’s stock worth $460,000 after acquiring an additional 2,800 shares during the period. Goldman Sachs Group Inc. grew its holdings in shares of KVH Industries by 20.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 31,445 shares of the communications equipment provider’s stock worth $219,000 after acquiring an additional 5,378 shares during the period. Squarepoint Ops LLC grew its holdings in shares of KVH Industries by 27.8% in the 3rd quarter. Squarepoint Ops LLC now owns 27,303 shares of the communications equipment provider’s stock worth $153,000 after acquiring an additional 5,935 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of KVH Industries by 4.9% in the 4th quarter. Geode Capital Management LLC now owns 160,108 shares of the communications equipment provider’s stock worth $1,116,000 after acquiring an additional 7,474 shares during the period. Institutional investors and hedge funds own 73.66% of the company’s stock.

Analyst Ratings Changes

KVHI has been the subject of several analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of KVH Industries in a research note on Friday, March 27th. Wall Street Zen cut KVH Industries from a “buy” rating to a “hold” rating in a research report on Sunday, March 22nd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell”.

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.