A report to investors from equity analysts at Exane/BNPP does not make happy reading for SES. The satellite operator will unveil its latest results on October 27th, and the bank is not expecting good news, and is advising shareholders to “Sell”.
“We expect SES to report €480 million of revenues for Q3/17 implying an 8.5 per cent organic revenue contraction. We will hear the usual ‘jam tomorrow’ story from the company but this weak number is unlikely to alleviate investors’ concern on top line trends,” says the bank.
“We also expect SES Video to report a 6 per cent org rev decline in Q3 17 or 3.8 per cent if adjusted for ‘periodic’ revenues. This is likely to reflect a combination of performance issues and weak underlying trends.”
“These results mirror the results of our unique live tracking tool which suggests that capacity usage on SES Astra 19.2/28.2 has been under pressure in Q3. Stock already has very high short-interest but quarterly revenue misses have become wearisome for even long-term believers. With top-line likely to remain pressured as sector pricing power falls I expect more people to give up in the stock.”