Why Intelsat Stock Jumped 16.4% in July
Shares of Intelsat (NYSE: I) climbed 16.4% in July, according to data from S&P Global Market Intelligence, partially recouping steep losses earlier this year ahead of both the satellite communications company's second-quarter report (late in the month) and a subsequent satellite launch earlier this week.
On the former, Intelsat's quarterly revenue declined 5% year over year to $509.4 million -- above consensus estimates for revenue closer to $503 million -- translating to a whopping GAAP net loss of $529.7 million, or $3.76 per share. That said, this loss largely reflected a $381.6 million asset impairment charge recognized during the quarter, as an anomaly in early April resulted in the total loss of its in-period Intelsat 29e satellite. Excluding this usual item, Intelsat's net loss would have been closer to $1.05 per share, below estimates for a per-share loss of roughly $0.83.
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