Benchmark Cuts Price Target on GeoEye (GEOY) Following New Guidance and Outlook
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Price: $35.83 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 23
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Benchmark is reiterating its Buy rating on shares of GeoEye (NASDAQ: GEOY), but is reducing its price target from $46 to $40 following management's weaker expectations for FY11 and FY12.
The company released its Q3 results with $85.8 million in revenue and EPS of $0.51, mixed with the consensus of $93 million in revenue and EPS of $0.56. The firm notes that excluding SPADAC, US Government Value-Added Services revenue was down over 60 percent. International revenues also fell by 8 percent while US commercial revenues rose 23 percent.
Management cut its FY11 revenue guidance to $348-355 million from $365-375 million and its EBITDA and EPS guidance to $176-181 million and $1.95-2.15 from $182-188 million and $2.00-2.25. For 2012, the company now forecasts mid-single-digit topline growth, down from its previous expectation of high single-digit growth.
Due to managements new guidance and its recent performance, the firm is reducing its FY11 revenue and EPS estimates from $375 million and $2.20 to $348.5 million and $1.98. Benchmark is maintaining its 27-28 percent operating margin estimate.
An analyst at Benchmark comments, "We believe GEOY should trade at a premium to the defense sector average based on its above average growth prospects from the 10-year EnhancedView contract and early stage commercial expansion. We think more budget clarity from Congress before year-end and the president’s FY13 budget request in February will improve funding visibility for EnhancedView."
For more ratings news on GeoEye click here and for the rating history of GeoEye click here.
Shares of GeoEye closed at $28.66 yesterday.
The company released its Q3 results with $85.8 million in revenue and EPS of $0.51, mixed with the consensus of $93 million in revenue and EPS of $0.56. The firm notes that excluding SPADAC, US Government Value-Added Services revenue was down over 60 percent. International revenues also fell by 8 percent while US commercial revenues rose 23 percent.
Management cut its FY11 revenue guidance to $348-355 million from $365-375 million and its EBITDA and EPS guidance to $176-181 million and $1.95-2.15 from $182-188 million and $2.00-2.25. For 2012, the company now forecasts mid-single-digit topline growth, down from its previous expectation of high single-digit growth.
Due to managements new guidance and its recent performance, the firm is reducing its FY11 revenue and EPS estimates from $375 million and $2.20 to $348.5 million and $1.98. Benchmark is maintaining its 27-28 percent operating margin estimate.
An analyst at Benchmark comments, "We believe GEOY should trade at a premium to the defense sector average based on its above average growth prospects from the 10-year EnhancedView contract and early stage commercial expansion. We think more budget clarity from Congress before year-end and the president’s FY13 budget request in February will improve funding visibility for EnhancedView."
For more ratings news on GeoEye click here and for the rating history of GeoEye click here.
Shares of GeoEye closed at $28.66 yesterday.
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