Speedcast is not a name on everyone’s lips given that it operates very much in the wholesale arena, but the Australian-based satellite facility business is very much suffering as it reports it is experiencing “a perfect storm” of tough headwinds. Speedcast’s core business is in satellite-based communications.
A recent profits warning talked of a significantly depressed EBITDA of some $145 million or so (down from an anticipated $165 million previously supplied) for this trading year.
Speedcast’s CEO PJ Baylier told analysts that at the moment he is not considering a sale of any of the assets Speedcast has picked up over the past year or two.
His comments went down like the proverbial lead balloon, crashing 40.8 per cent in the company’s Australian share price, and wiping a thumping $340 million in the company’s market capitalisation following the company’s downgrade to its earnings guidance.
The Speedcast share price has plummeted from A$3.49 to A$2.06 and the stock even managed to hit a new 52-week low of just A$2.04 per share at one point. That share price collapse has fallen, and to just A$1.92 on July 23rd.