TSAT Earnings Prediction
The chart below shows how TSAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TSAT sees a -0.60% change in stock price 10 days leading up to the earnings, and a +13.39% change 10 days following the report. On the earnings day itself, the stock moves by -2.18%. This data can give you a slight idea of what to expect for the next quarter's release.
TSAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
138.44M
-20.93%
-9.18%
Gross Margin
70.20%
7.36%
0.11%
Operating Margin
42.00%
-2.35%
1.87%
Net Margin
49.00%
2720.32%
-42.22%
EPS
1.23
1637.50%
-49.80%
No Data Available
TSAT Earnings Analysis
Telesat Corporation Class A Common Shares and Class B Variable Voting Shares Corporation (TSAT.O) Earnings Conference Call
Positive
Positive Revenue Outlook: 1. Strong Revenue Guidance: Telesat expects full-year revenues for 2024 to be at the upper end of the guidance range of CAD545 million to CAD565 million, indicating confidence in future performance.
Strong Operational Efficiency: 2. High Adjusted EBITDA Margin: The adjusted EBITDA margin for Q3 2024 was 69.5%, demonstrating strong operational efficiency despite a decrease in revenues.
Strong Cash Reserves: 3. Significant Cash Position: Telesat ended Q3 2024 with CAD1.1 billion in cash, providing a solid financial foundation for ongoing operations and capital expenditures.
Debt Repurchase Benefits: 4. Debt Repurchase Savings: The company has repurchased CAD262 million in debt at a cost of CAD190 million, resulting in annual interest savings of approximately CAD54 million.
Foreign Exchange Gain Improvement: 5. Positive Foreign Exchange Impact: Telesat recorded a gain on foreign exchange of CAD36 million in Q3 2024, a significant improvement compared to a loss of CAD77 million in the same quarter of the previous year.
Negative
Revenue Decline Analysis: Q3 2024 revenues decreased by CAD37 million to CAD138 million compared to the same period in 2023, primarily due to a reduction in services and lower rates on long-term agreements.
Adjusted EBITDA Decline: Adjusted EBITDA for Q3 2024 decreased by CAD37 million to CAD96 million, resulting in a margin drop from 75.9% in Q3 2023 to 69.5%.
Cash Reduction Agreement: The renewal agreement with EchoStar for Nimiq-5 will result in a 70% reduction in cash received, as DISH ramps down its capacity over the next year.
Explorer Revenue Decline: Revenue from Explorer is expected to decline by CAD4 million next year due to a restructured contract, despite being flat at the EBITDA line.
High Leverage Ratio: Telesat's total leverage ratio at the end of Q3 was 5.84 times, indicating a high level of debt relative to earnings.
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TSAT Earning Call Sentiment
Telesat Corporation (TSAT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TSAT.O
3.14%Positive
The earnings call shows a decline in revenue and EBITDA, with management avoiding direct answers about key issues, such as the EchoStar renewal impact and Taiwan discussions. Despite debt repurchase savings, the financial outlook is weak due to reduced cash flow from re-rated contracts and ongoing legal disputes. The Q&A section reveals concerns about competitive positioning and uncertainties in major contracts. While Lightspeed developments are positive, the overall sentiment is negative due to financial underperformance and management's lack of clarity on critical issues.