KVH Industries (NASDAQ:KVHI) Announces Earnings Results

KVH Industries (NASDAQ:KVHI) posted its earnings results on Thursday. The communications equipment provider reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.03), FiscalAI reports. The company had revenue of $33.72 million for the quarter, compared to the consensus estimate 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 Price Performance

KVH Industries stock traded down $0.26 during mid-day trading on Friday, reaching $8.03. 240,526 shares of the stock traded hands, compared to its average volume of 205,410. KVH Industries has a 12-month low of $5.09 and a 12-month high of $13.00. The business’s 50-day moving average is $8.94 and its 200-day moving average is $8.52. The stock has a market capitalization of $156.59 million, a PE ratio of -26.77 and a beta of 0.44.

Analyst Upgrades and Downgrades

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

Insider Transactions at KVH Industries

In other KVH Industries news, major shareholder Bradley Louis Radoff sold 35,000 shares of the business’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $11.20, for a total transaction of $392,000.00. Following the completion of the sale, the insider directly 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 document filed with the SEC, which is available through this hyperlink. Insiders sold 39,092 shares of company stock valued at $423,099 over the last 90 days. Company insiders own 21.40% of the company’s stock.

Hedge Funds Weigh In On KVH Industries

Several institutional investors have recently made changes to their positions in the business. Orion Porfolio Solutions LLC raised its stake in shares of KVH Industries by 3.3% in the second quarter. Orion Porfolio Solutions LLC now owns 68,829 shares of the communications equipment provider’s stock worth $367,000 after buying an additional 2,222 shares during the period. State Street Corp grew its stake in shares of KVH Industries by 4.4% during the 4th quarter. State Street Corp now owns 66,018 shares of the communications equipment provider’s stock valued at $460,000 after acquiring an additional 2,800 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of KVH Industries by 20.6% during the 4th quarter. Goldman Sachs Group Inc. now owns 31,445 shares of the communications equipment provider’s stock valued at $219,000 after acquiring an additional 5,378 shares during the period. Squarepoint Ops LLC increased its holdings in 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 in the last quarter. Finally, Geode Capital Management LLC increased its holdings in 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 in the last quarter. Institutional investors own 73.66% of the company’s stock.

About KVH Industries

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.