KVH Industries Q4 Gets Boost From Airtime Revenue, India Expansion Serving As Additional Catalyst: Analyst

Anusuya Lahiri
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  • Needham analyst Ryan Koontz maintained a Buy rating on KVH Industries, Inc (NASDAQ: KVHI) with a price target of $13.00.

  • KVHI reported 4Q22 revenue from continuing operations of $36 million, above the $34.3 million consensus.

  • Adjusted EBITDA of $4.3 million was solidly above the $3.5 million consensus.

  • Total revenue from continued operations increased +2% Y/Y, mainly driven by strengths in airtime revenue.

  • Adjusted EPS of $0.03 was ahead of Needham's $0.00 estimate and was up from ($0.17) in the year-ago period.

  • A gross margin of 35% (+350bps Y/Y, -120bps Q/Q) benefited from a solid service gross margin of 46% (+1090bps Y/Y, -10bps Q/Q).

  • VSAT airtime service revenue increased 12% Y/Y to $26.8 million with a gross margin of 43.5% (+900bps Y/Y).

  • The company reported 6,900 active subscribers on its new, more affordable, and higher-margin HTS network compared to 6,800 subscribers in the previous quarter.

  • KVHI is excited about its expansion into India. It currently ships its legacy TracPhone (L-band) systems and plans to shift to the new TracNet H-series after the necessary approvals.

  • The company reports strong traction with innovative new hybrid-connectivity TracNet systems, which began shipping in July and offer significant improvements in near-land customer experience.

  • Despite its competitive threat, the company has begun integrating Starlink into its hybrid offering, believing that Starlink is a best-effort service unable to offer SLA guarantees.

  • Management relayed comfort in sustaining its new, lower level of opex and profitability, supported by KVHI's first reported operating income in 6 years.

  • Price Action: KVHI shares traded lower by 1.71% at $9.79 on the last check Friday.

Latest Ratings for KVHI

Mar 2022

Raymond James

Maintains

Strong Buy

Nov 2021

Raymond James

Upgrades

Outperform

Strong Buy

Jun 2021

Needham

Initiates Coverage On

Buy

View More Analyst Ratings for KVHI

View the Latest Analyst Ratings

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This article KVH Industries Q4 Gets Boost From Airtime Revenue, India Expansion Serving As Additional Catalyst: Analyst originally appeared on Benzinga.com

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