EchoStar Earnings: The Future Keeps Getting Cloudier After Another Quarter Without New Financing

EchoStar delivered relatively weak first-quarter results as its wireless business again lost customers, the Hughes segment posted a big drop in revenue and margins, and the television business continued to decline. Critically, the firm has yet to secure financing, again stating that it is evaluating multiple offers. We are reducing our fair value estimate to $20 from $25, which assumes EchoStar can raise additional capital. However, we reiterate our Extreme Uncertainty Rating, which reflects the high probability that the firm is unable to secure capital on acceptable terms.