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

by · The Cerbat Gem

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

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 stock traded down $0.26 during trading on Friday, reaching $8.03. 240,526 shares of the company traded hands, compared to its average volume of 205,410. The business has a 50 day simple moving average of $8.94 and a 200 day simple moving average of $8.52. KVH Industries has a 12 month low of $5.09 and a 12 month high of $13.00. The company has a market capitalization of $156.57 million, a price-to-earnings ratio of -26.77 and a beta of 0.44.

Insider Activity

In related news, major shareholder Bradley Louis Radoff sold 35,000 shares of the business’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 owned 290,000 shares in the company, valued at $3,248,000. The trade was a 10.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Over the last quarter, insiders have sold 39,092 shares of company stock valued at $423,099. 21.40% of the stock is owned by insiders.

Hedge Funds Weigh In On KVH Industries

Several institutional investors and hedge funds have recently bought and sold shares of KVHI. HRT Financial LP purchased a new stake in KVH Industries in the fourth quarter valued at approximately $70,000. OMERS ADMINISTRATION Corp purchased a new stake in KVH Industries in the fourth quarter valued at $86,000. NewEdge Advisors LLC purchased a new stake in KVH Industries in the third quarter valued at $90,000. Virtu Financial LLC acquired a new stake in KVH Industries during the 4th quarter worth about $102,000. Finally, Jacobs Levy Equity Management Inc. purchased a new position in shares of KVH Industries during the 3rd quarter valued at about $113,000. 73.66% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

View Our Latest Stock Analysis on KVHI

KVH Industries Company Profile

(Get Free Report)

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.

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