Trump announces trade deal with EU following months of negotiations
ENGLEWOOD, CO - EchoStar Corporation (NASDAQ:SATS), currently valued at $5.8 billion and trading near $20 per share after a recent 16% weekly decline, along with its subsidiaries DISH Network Corporation (NASDAQ:DISH) and Hughes Satellite Systems Corporation, disclosed in a recent SEC filing that the Federal Communications Commission ( FCC (BME:FCC)) has initiated a review of EchoStar’s adherence to certain federal commitments regarding the provision of 5G services in the United States. According to InvestingPro analysis, the company’s stock is currently trading close to its Fair Value.
The FCC’s inquiry, as detailed in a letter dated May 9, 2025, also addresses questions related to EchoStar’s extension for its September 2024 buildout and the utilization of the 2GHz band for Mobile Satellite Services (MSS). The letter was included as Exhibit 99.1 in the 8-K filing. This regulatory scrutiny comes as EchoStar maintains a significant debt burden, with a debt-to-capital ratio of 0.81, though InvestingPro data shows the company’s current ratio of 1.26 indicates sufficient liquidity to meet short-term obligations.
In response to the FCC’s letter, EchoStar’s Chairman Charles W. Ergen stated the company’s long-standing collaborative relationship with the FCC and its significant investments in deploying a vast 5G Open RAN network. Ergen highlighted EchoStar’s achievements, including the establishment of over 24,000 5G sites, providing service to more than 268 million people, and meeting FCC commitments thus far. He also emphasized the company’s ongoing efforts to expand network deployment and develop Open RAN direct-to-device satellite technology to enhance connectivity in the U.S. and globally.
EchoStar’s filing did not predict the outcome of the FCC’s review but expressed a commitment to continue working with the administration and FCC to deliver results for the American people. The information provided is based on the company’s SEC filing. For investors seeking deeper insights, InvestingPro offers a comprehensive research report on EchoStar, including detailed analysis of the company’s financial health, which is currently rated as ’FAIR’ with an overall score of 2.34 out of 5, along with 8 additional exclusive ProTips.
In other recent news, EchoStar Corporation reported its Q1 2025 earnings, which revealed a slight miss in both earnings per share and revenue compared to analyst expectations. The company posted an EPS of -$0.71, missing the forecast of -$0.66, and reported revenue of $3.87 billion, slightly below the anticipated $3.88 billion. Despite these misses, the wireless segment showed resilience with a 6.4% increase in revenue, reaching $973 million, while the pay-TV segment experienced a 6.9% decline. EchoStar’s financial position remains strong, with $5.4 billion in cash and marketable securities, and the company reported positive operating free cash flow of $77 million. Analysts at TD Cowen revised their price target for EchoStar to $28 from $32, maintaining a Buy rating, citing optimism about the company’s wireless segment and potential regulatory benefits. EchoStar’s strategic focus includes expanding its Boost Mobile network and enterprise services, with plans to increase capital expenditures in 2026. The company is also exploring developments in low Earth orbit satellite communications, which could present new growth opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.