Winning Stock Forecast: Global Eagle Entertainment (NASDAQ: ENT) A High-Flyer Boasting a 49.62% Return in 7 Days

Winning Stock Forecast: Global Eagle Entertainment (NASDAQ:ENT) A High-Flyer Boasting a 49.62% Return in 7 Days

[Source: Wikimedia Commons, May 30, 2018]

“During the first quarter of 2018, we focused on our objectives of operating a healthy core business, driving profitable growth and aggressively transforming our business. We continue to expect a minimum of 25% Adjusted EBITDA growth in 2018 versus 2017”

— Josh Marks, CEO of Global Eagle Entertainment

During the past week, Global Eagle Entertainment’s stock jumped 49.62% outperforming the market by over 50%, following their earnings announcement. Global Eagle Entertainment is a leading provider of media, content, connectivity, and data analytics to markets across air, sea, and land. They reported their financial results for Q1 on May 15th, 2018. For the first quarter of 2018, Global Eagle recorded revenue of $156 million, incurred a net loss of $38.3 million, and generated Adjusted EBITDA of $17.3 million.

However, the company’s stock price for Global Eagle has been under pressure over the last three years. Lower margins and escalating losses have contributed to the price decrease, but recently the company published their Q1 Financial Report detailing their increasing profitability. Its losses swelled from $57 million in 2014 to $357 million in fiscal 2017 though it had robust growth in revenues. The company has been taking several initiatives to support its margins and to generate profitable growth in the coming years.

Nonetheless, as of current, the company’s stock nearly doubled since their May 15th earnings report, from a price of $0.87 at market close in May 15th to $1.84 per share at market close on May 29th. The company’s stock projection is expected to increase in the coming months, as ENT is on the right track in diminishing their net losses.

[Source: Yahoo Finance, May 30, 2018]

Q1 2018 Summary:

  •  Total revenue for the first quarter of 2018 was $156 million, a 2.6% increase over the prior-year period. This increase was primarily driven by growth in service revenue in their Connectivity segment due to new aircraft, vessel and site additions, as well as increased equipment revenue.
  •  Net loss for the first quarter of 2018 was $38.3 million. The smaller net loss over the prior-year period ($125.611 million) was primarily driven by a goodwill impairment in the first quarter of 2017 that did not recur in the first quarter of 2018. In the first quarter of 2017, the Company recorded a non-cash goodwill impairment charge of $78 million related to its Maritime & Land business unit within its Connectivity segment.
  • Adjusted EBITDA for the first quarter of 2018 was $17.3 million, which was a slight increase over the prior-year period, primarily due to growth in the Connectivity segment’s service revenue and equipment revenue, which included higher margin sales of spare parts.

The company has been taking several initiatives to support its margins and to generate profitable growth in the coming years.

Business Transformation Strategies

The company has been actively working on business transformation strategies to expand their margins and earnings combined with continued growth from its top-line. They have been working on three key strategies:

  • Running a healthy core business
  • Driving profitable growth
  • Aggressively transforming its business

The company has been seeing the positive impact of business strategies on its financial numbers. ENT has narrowed its losses in the latest quarter. Its loss from continuing operations stood at around $29 million in the most recent quarter; lower from the loss of $101 million in the year-ago period. The management expects its full-year EBITDA to improve 25% from the past year.

Stock Price Movement and Price Target

Global Eagle Entertainment[Source: finviz.com, May 30, 2018]

Its stock plummeted 86% in the last three years. Global Eagle Entertainment stock currently trades around $1.80 a share – with the 52-week trading range of $0.87 – $3.84. The company market cap stands around $163 million at present. Analysts, on the other hand, expect its stock price to trade at around $4 by the end of this year.

Analyst Recommendations:

According to analyst recommendations from Yahoo Finance, the current consensus is a “Buy/Hold” in ENT Stock, with 2 advising a “Buy, 2 advising a “Hold”,  and 1 advising a “Sell”.

I Know First’s Algorithm Success With ENT Stock:

On May 21st 2018. I Know First algorithm issued a bullish 7-day forecast for Global Eagle Entertainment (NASDAQ:ENT). The forecast illustrated a signal  of 11.56 and a predictability of 0.16  In accordance with this bullish forecast, FCAU stock returned 49.62% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.

Current I Know First subscribers received this bullish ENT forecast on May 21st 2018. 

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About Global Eagle Entertainment Inc. (NASDAQ: ENT):

Global Eagle Entertainment Inc. (NASDAQ: ENT), incorporated on February 2, 2011, is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wireless Fidelity (Wi-Fi), movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services, e-commerce solutions and original content development. The Company deploys its connectivity services across the world to the airline industry, with customers and flights located in North America, the Caribbean, Asia, the Middle East, Africa and Europe. It provides content curating and processing services to the airline, maritime, and non-theatrical industries. Its customers also include Hollywood and international studios.

Disclaimer

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts. Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.