||EPS - Basic
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Inmarsat Share Discussion Threads
Showing 2151 to 2174 of 2175 messages
|Loses, good call, congrats, should have listened to your post.|
|A frozen payout would be a result imv.|
|from the Alliance Trust newsletter...
Inmarsat dividend to return to earth
Yield still worth the risk despite growth threat
Shareholders in Inmarsat (ISAT) could face a payout freeze as the company grapples with investing for long-term growth versus bumpy free cash flow.
The satellites network operator has increased its dividend payment by more than 4% in each of the past five years, with double-digit increases in two of those financial periods.
Since 2013 free cash flow (FCF) has bobbed between $81m and $298.9m. It is anticipated to deliver $96.3m for 2016. Consensus forecasts for 2017 through to 2019 show free cash flow of $24.4m, $109.6m and $111.2m respectively. Dividends will cost the company between $245m and $264m per year over the same three years.
‘We believe that the market is pricing in continued growth in the dividend near-term,’ note UBS analysts Michael Hill and Polo Tang. ‘In our base-case scenario we expect Inmarsat – possibly at full year 2016 results – to stop growing the dividend until it is covered by equity free cash flow (EFCF).’
EFCF is calculated by adding net income, depreciation and amortisation and net borrowings together, then stripping out capital expenditure and working capital.
‘We believe this change in the dividend policy will allow Inmarsat to invest in its substantial long-term opportunities and avoid pressuring the balance sheet while EFCF generation is limited and uncertain,’ comment Hill and Tang.
Inmarsat has endured a tough past year with a patchy operating performance sparking increasing concerns over financing costs of its near $1.8bn net debt. The share price has almost halved since the start of 2016 to 638p.
Headline trading showed some improvement during the third quarter to 30 September 2016. Revenue and EBITDA (earnings before interest, tax, depreciation and amortisation) increased 5.8% and 14% to $342m and $205m respectively, although almost all of the growth was down to its Ligado networks joint venture in the US (previously called LightSquared).
There has been some improvement. Contracts with government agencies have increased modestly while Inmarsat’s aviation side has seen a swathe of agreements over the past three or four months. It has been signing airlines to its Global Xpress fleet to supply inflight broadband internet access.
But the enterprise division continues to go backwards as does its maritime arm, worth 45% of group revenues. The latter ‘continues to be hindered by a sustained recession in the global shipping industry,’ according to analysts.
Shares says: "Even if the payout is frozen the forward income yield would still stand out at 6.6%. On balance that looks attractive even if sentiment may make for a bumpy share price through 2017. "|
|LOL. - find that out shortly.|
|The number of the beast...|
|Inmarsat raised to outperform at Macquarie|
|This worm turning.|
|Yep. Trying to catch them at the end of their investment cycle, they can't be far off that, even with the delay|
|Had a buy order a few days ago at 600 but it expired just before the jump to 650. Never thought I would be able to get in at this level again so taking full opportunity. These go in my SIPP for a long term hold hoping for some share price growth but happy to take the good dividend yield. Although this might take a hit in the near future if costs overtake profits but this should be short term with profits increasing as investments costs drop out of the equation. Very happy at this level.|
|Not discounted by the market? It's halved over the last 12 months?|
|Well well, SG putting the boot in.... brexit related..... course not !|
|Dow Jones Newswires - 17/2/17:
Societe Generale initiates coverage on three European satellite services firms, handing buy ratings to Eutelsat and SES and a sell rating to Inmarsat. SES leads its market while its rivals grapple with the disruption brought by high-throughput satellites. SocGen anticipates that SES will boost revenue by a third by 2020. Shares in Eutelsat are down 37% on-the-year and the bank sees this sell-off as overdone, adding that the company may become a growth story again in the next decade. Until then, Eutelsat remains its sector's defensive stock. But on Inmarsat, SocGen says although the company's aggressive growth strategy may well work in the long-term, the initial margin pain it will bring has not yet been discounted by the market.|
|After reading the Buy tip in Telegraph I have bought in. Good luck all|
|Looks way overdone to me , I just added at 615 even though I have too many.|
|I take no notice of price targets in terms of making decisions.|
|As is well known brokers have their own agenda....|
|from 810 previously on global shipping concerns and a dividend which will not grow.
It doesn't need to grow from this level (!)|
randolph and mortimer
|Ubs are idiots.|
|Was just wondering myself what had happened.
Results not far away so lets see what they have to say.|
|Downgrades Inmarsat cut to sell at UBS|
|Big drop today. Any idea why?|
|Perhals the worm is turning.|
|14 February 2017: Satlink Satellite Communications Ltd, a world leader in satellite communication and technical services, has entered into a new agreement with Inmarsat (LSE: ISAT.L), the leading provider of global mobile satellite communication services, to integrate Fleet Xpress into Satlink's existing service portfolio. Through the agreement, Satlink will bring more than 1,500 vessels to the Fleet Xpress service over a five-year period.|
|I been in this share in the past and this may be worth a buy as long as dividend holds and revenue too as Losos is right in saying. Got good growth chances and dividend covered plus $ based
on a three year low or four makes cash and money PE not too high either|