KVH Industries Earnings: Here’s Why Investors are Selling Shares Now

KVH Industries Inc. (NASDAQ:KVHI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 8.12%.

KVH Industries Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.18 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 23.83% to $39.54 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KVH Industries Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.16. It beat the average revenue estimate of $37.62 million.

Quoting Management: “Our record results this quarter reflect continued growth from both our broadband communications and guidance and stabilization businesses,” said Martin Kits van Heyningen, KVH’s chief executive officer. “We continue to see solid momentum in our business both in terms of short-term sales success and an expanding pipeline of future opportunities. With VSAT airtime revenues in the fourth quarter increasing 53% compared to the same quarter last year, we expect to have a higher degree of predictability over a significant element of our revenues going forward.”

Key Stats (on next page)…

Revenue increased 1.85% from $38.82 million in the previous quarter. EPS increased 50% from $0.12 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.16 and has not changed. For the current year, the average estimate is a profit of $0.22, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)