In a report released today, Paul Penney from Northland Securities maintained a Buy rating on Global Eagle (ENT), with a price target of $4.75. The company’s shares opened today at $2.13.
“Weaker gross margins of ~13.7% were down from ~24.5% a year ago due to increased investment in satellite network capacity to support the ramp up of aircraft activations. In turn, the low gross margins were somewhat offset by a decline in operating expenses, driving adjusted EBITDA of $17.0M (down ~13.7% YoY), compared to our $20.2M and consensus $21.1M. Diving down deeper, we highlight a number of positive call-outs on the Bolstered Market Positioning – While not necessarily evident throughout their mainline Q4 operating / financial metrics, we believe ENT remains in increasingly strong competitive positioning in the marketplace today (on the connectivity (IFC) and media / content (IFE) fronts).”
According to TipRanks.com, Penney is a 3-star analyst with an average return of 5.3% and a 44.7% success rate. Penney covers the Technology sector, focusing on stocks such as Iridium Communications, ImageWare Systems Inc, and Boingo Wireless Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Global Eagle with a $4.75 average price target.
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Based on Global Eagle’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $43.23 million. In comparison, last year the company had a GAAP net loss of $134 million.
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Global Eagle Entertainment, Inc. engages in the provision of content, connectivity and digital media solutions for airlines. It operates through the Media and Content, and Connectivity segments. The Media and Content segment consists of licensing fees paid to acquire content rights for the airline industry.