Markets & Finance

Needham Keeps Buy on KVH Industries


Needham reiterates its buy rating on KVH Industries (KVHI).

Analyst Rich Valera says slippage of a defense order, and the A5 production delay (which seems to be largely resolved) is not overly concerning. He finds KVH's 2,000 to 3,000 A5 unit estimates encouraging as it demonstrates solid initial demand, and some confidence on the company's part in its ability to meet demand.

That said, he had not anticipated the substantial startup and early production costs of A5. Valera says the key to a continued positive stance is the belief that KVH will be able to cut production costs as volume ramps. Hence, he thinks long-term fundamentals are intact. Valera cut the 22 cents 2003 earnings per share estimate to 5 cents, and cut the 62 cents 2004 estimate to 45 cents.


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus