Steve Mehs
11-13-02, 04:36 AM
After the markets close today, Pegasus will report third quarter results, which according to one observer could detail subscriber losses at the company for the three-month period.
William Kidd, satellite analyst at Lehman Brothers, lowered his third quarter subscriber expectations for Pegasus to a net loss of 25,000 customers. He also lowered fourth quarter net additions to zero from a previous projection of 24,600 net adds.
"We feel that Pegasus' substantial debt load and dim subscriber growth prospects leave the company with little flexibility, and continues to leave equity holders in a precarious position," Kidd said. He reiterated his "3-Underweight" rating on Pegasus stock.
On the financial side, Kidd raised EBITDA and EPS estimates for Pegasus, due to fewer gross customer additions. Kidd's third quarter EPS jumped from a loss of 82 cents a share to a loss of 71 cents a share. The consensus estimate is for an EPS loss of 67 cents a share. Kidd's new EBITDA estimate is $42 million.
Pegasus sells DirecTV in rural areas.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/111302.shtm#two) (Used with Permission)
William Kidd, satellite analyst at Lehman Brothers, lowered his third quarter subscriber expectations for Pegasus to a net loss of 25,000 customers. He also lowered fourth quarter net additions to zero from a previous projection of 24,600 net adds.
"We feel that Pegasus' substantial debt load and dim subscriber growth prospects leave the company with little flexibility, and continues to leave equity holders in a precarious position," Kidd said. He reiterated his "3-Underweight" rating on Pegasus stock.
On the financial side, Kidd raised EBITDA and EPS estimates for Pegasus, due to fewer gross customer additions. Kidd's third quarter EPS jumped from a loss of 82 cents a share to a loss of 71 cents a share. The consensus estimate is for an EPS loss of 67 cents a share. Kidd's new EBITDA estimate is $42 million.
Pegasus sells DirecTV in rural areas.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/111302.shtm#two) (Used with Permission)