SATS - Phillip Securities 2023-08-17: Acquisition Costs Weighed On 1Q24 Earnings

• SATS (SGX:S58) slipped into net loss in 1Q24, after booking S$29.7mil integration costs and amortization expenses relating to the acquisition of WFS. Excluding these, net loss was S$0.2mil, which was in line with our expectations. Operating gains were cancelled out by higher interest expense.
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• Maintain NEUTRAL recommendation and target price of $2.51 for SATS. We lowered FY24e earnings forecast by 49% to take into account the integration costs.

The Negatives

Acquisition-related costs weighed on earnings.

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Net debt rose to S$2.2bn (Mar 23: S$0.77bn).

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Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2025-02-26 SATS - Minimal FY25e Financial Impact From De Minimis Removal.

Previous report by Phillip:
2024-11-11 SATS - Volume & Prices Drive Earnings.

Price targets by 3 other brokers at SATS Target Prices.

Listing of research reports at SATS Analyst Reports.

Relevant links:
SATS Share Price History,
SATS Announcements,
SATS Dividend Payout Dates & Corporate Actions,
SATS News