Needham & Company Cuts Price Target on KVH Industries (KVHI) Following In-Line 4Q and Mixed Guide

Needham & Company maintained a Buy rating on KVH Industries (NASDAQ: KVHI), and cut the price target to $13.00 (from $14.00), following the company's 4Q earnings report. KVHI posted 4Q15 results including $54.0MM of revenue, $9.7MM Adj. EBITDA and $0.43 NG EPS, essentially in line with consensus of $53.6MM, $10.3MM and $0.40, respectively. 1Q16 guidance of $41-44MM and breakeven to $1.0MM of EBITDA was well below prior $48.4MM and $5.6MM estimates, respectively, suggesting a more back-half weighted year than previously modeled.

Analyst Richard Valera commented, "In KVH's 4Q results and initial 2016 guidance, the headwinds seen from its Oil & Gas customers, generally challenging conditions in the shipping industry and FX (in its UK-based businesses) conspired to pressure results/ outlook. While we are frustrated by the failure of KVHI's results to live up to the promise of its businesses, we continue to like the company's synergistic combination of maritime broadband and content services, and see its TACNAV business as a lumpy but likely increasingly valuable wildcard. We maintain our Buy while trimming our PT to $13 (was $14), or ~8.9x EV/C2017E EBITDA."

For an analyst ratings summary and ratings history on KVH Industries click here. For more ratings news on KVH Industries click here.

Shares of KVH Industries closed at $9.15 yesterday.

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