Morgan Joseph Maintains a 'Hold' on Towerstream (TWER); 4Q10 Results In-Line
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Rating Summary:
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Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Morgan Joseph maintains a 'Hold' on Towerstream (NASDAQ: TWER).
Morgan analyst says, "Last night, after the close, Towerstream reported 4Q10 sales and EPS of $5.5mm and a loss of ($0.04), respectively, in line with our sales and EPS estimates, but lower than the Street's consensus EPS expectation by a penny. Towerstream showed further sequential improvement with adjusted EBITDA of $706,000, up from $414,000 in 3Q10. We also note that churn in the December quarter decreased to 1.4% from 1.6% in 3Q10, and it does not appear to be a significant concern, in our view. The company's cash balance at the end of the quarter was $23mm, after raising net proceeds of $18mm in a secondary offering, and up from $8.4mm in 3Q10. We believe Towerstream's cash balance could continue to decline throughout 2011 as a result of capital expenditures, although we expect it to be at a slower rate of decline as adjusted EBITDA improves. We continue to estimate 2011 sales of $25.5mm, but are reducing our EPS estimate to ($0.14) from ($0.10). We are maintaining our 2012 sales estimate of $33.5mm, but reducing our 2012 EPS estimate to $0.16 from $0.26."
For more ratings news on Towerstream click here and for the rating history of Towerstream click here.
Shares of Towerstream closed at $4.55 yesterday.
Morgan analyst says, "Last night, after the close, Towerstream reported 4Q10 sales and EPS of $5.5mm and a loss of ($0.04), respectively, in line with our sales and EPS estimates, but lower than the Street's consensus EPS expectation by a penny. Towerstream showed further sequential improvement with adjusted EBITDA of $706,000, up from $414,000 in 3Q10. We also note that churn in the December quarter decreased to 1.4% from 1.6% in 3Q10, and it does not appear to be a significant concern, in our view. The company's cash balance at the end of the quarter was $23mm, after raising net proceeds of $18mm in a secondary offering, and up from $8.4mm in 3Q10. We believe Towerstream's cash balance could continue to decline throughout 2011 as a result of capital expenditures, although we expect it to be at a slower rate of decline as adjusted EBITDA improves. We continue to estimate 2011 sales of $25.5mm, but are reducing our EPS estimate to ($0.14) from ($0.10). We are maintaining our 2012 sales estimate of $33.5mm, but reducing our 2012 EPS estimate to $0.16 from $0.26."
For more ratings news on Towerstream click here and for the rating history of Towerstream click here.
Shares of Towerstream closed at $4.55 yesterday.
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