EchoStar has reasonable growth prospects ahead of it.

The global satellite communication and internet service provider, EchoStar (SATS) shares have been on the lower side since the massive plunge in March last year. However, SATS stock is showing signs of recovery.

The quarterly stats have improved and the company has gained new subscribers. Moreover, the company has been working on a couple of projects that could potentially push its stock price in the future.

What’s happening?

EchoStar (SATS) is one of the leading satellite communication and internet service providing firms. The company has been improving its customer base—thanks to growing demand around the world.

In the third-quarter report, the company reported that it has seen increasing demand for its internet service. The company’s consumer subscriber base has increased by almost 38,000, which was mostly from the international market. The increase in demand helped the company to raise higher Net income and Adjusted EBITDA.

During Q3 the net income was reported around $23.3 million from the continuing operations. While the revenue for the quarter was $473.5 million. After a poor year early on, the company started to attract more consumers during Q3. However, for the nine-months, the net income was negative, with a loss of $49.3 million.

The CEO of EchoStar in the Q3 report noted that they are focusing on the needs of their customers as connectivity becomes a more vital part of business, entertainment, and communications.

Following the quarterly report, late last year, the company announced a partnership with Jersey Telecom (JT) for establishing a hybrid satellite or cellular capability to the Internet of Things (IoT) for customers across Europe and the UK.

The company in collaboration with JT would combine its European S-band mobile satellite network with JT’s 4G network, offering a cellular roaming network for consumers. The service would be available on EchoStar’s new SYNERGY service suite.

The company says that this service would cost very low and provide comprehensive hybrid connectivity to users. This would offer high-quality cellular service to run any sort of application with the best connectivity—at any place. 

Furthermore, the company is set to launch its Jupiter 3 satellite in the second half of 2021. This new venture would bring more subscribers. The new satellite would provide a much higher speed and capacity for existing customers.EchoStar is anticipated to grab profits from this new launch in 2022.

Conclusion

EchoStar (SATS) has some exciting projects on hand. Also, with the better quarterly results, the company is expected to further improve its outcomes in Q4. With things getting better, EchoStar has reasonable upside potential as we head forward.