Needham & Company Maintains a 'Buy' on KVH Industries (KVHI); Guidance Cut on Weak Leisure
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Price: $7.70 -2.41%
Rating Summary:
4 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Needham & Company maintains a 'Buy' on KVH Industries (NASDAQ: KVHI), PT $15.
Needham analyst says, "We have taken a substantial cut to our previously below guidance 2011 estimates in light of the weaker leisure outlook and loss of LiveTV revenue, but again find ourselves somewhat below guidance. While we appreciate the TAM expansion possible by the V3 with its price point a little over half the V7’s, at this early stage its difficult to gauge how many of these units will be incremental vs. how many could be cannibalized V7 sales—thus we find it difficult to get comfortable with the company’s guidance of doubling Mini-VSAT revenue in 2011 following a 59% y/y gain in 1Q11. That said, we believe if the company can execute on the still-impressive mini-VSAT ramp (+70% y/y) embedded in our estimates, the stock could work. We therefore maintain our rating as we watch execution of the V3 ramp."
"For 2011, we reduce our estimates to $119MM/$0.13 from $126MM/$0.40 GAAP EPS. For 2012 we cut our estimates to $140MM/$0.64 GAAP ($0.71 NG) from $147MM and $0.73 GAAP EPS."
For more ratings news on KVH Industries click here and for the rating history of KVH Industries click here.
Shares of KVH Industries closed at $15.83 yesterday.
Needham analyst says, "We have taken a substantial cut to our previously below guidance 2011 estimates in light of the weaker leisure outlook and loss of LiveTV revenue, but again find ourselves somewhat below guidance. While we appreciate the TAM expansion possible by the V3 with its price point a little over half the V7’s, at this early stage its difficult to gauge how many of these units will be incremental vs. how many could be cannibalized V7 sales—thus we find it difficult to get comfortable with the company’s guidance of doubling Mini-VSAT revenue in 2011 following a 59% y/y gain in 1Q11. That said, we believe if the company can execute on the still-impressive mini-VSAT ramp (+70% y/y) embedded in our estimates, the stock could work. We therefore maintain our rating as we watch execution of the V3 ramp."
"For 2011, we reduce our estimates to $119MM/$0.13 from $126MM/$0.40 GAAP EPS. For 2012 we cut our estimates to $140MM/$0.64 GAAP ($0.71 NG) from $147MM and $0.73 GAAP EPS."
For more ratings news on KVH Industries click here and for the rating history of KVH Industries click here.
Shares of KVH Industries closed at $15.83 yesterday.
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