PanAmSat’s Profit Skyrockets by 86%
PanAmSat Corp., the largest commercial-satellite operator, said its first-quarter profit soared by 86% to $56.6 million, or 38 cents a share, well beyond the 19 cents analysts were expecting, as it sold more video, Internet and data services.
The results sent shares in Greenwich, Conn.-based PanAmSat up $4.31, or 10%, to close at $49.75, on Nasdaq.
PanAmSat, which is 81%-owned by General Motors Corp.’s Hughes Electronics unit, said revenue climbed 55% to $299.1 million.
An analyst said PanAmSat benefited from selling, rather than leasing, more transponders on its satellites to customers who use the space to broadcast television and data services.
A large portion of transponder sales came from contracts with Walt Disney Co. and International FiberCom Inc., PanAmSat said.
At a Glance
Other earnings, excluding one-time gains or charges unless noted, include:
* Abbott Laboratories said earnings rose 3.9% in the first quarter to $693 million, or 44 cents a share, matching estimates, as sales edged up 1.2% to $3.35 billion. Higher sales of the ulcer drug Prevacid helped offset a decline in sales at the medical-testing unit.
* Finance company Associates First Capital Corp. said first-quarter profit rose 10% to $370.5 million, or 51 cents a share, as more sub-prime consumers paid their home equity loans on time. Revenue rose 6% to $3.38 billion.
* E-Tek Dynamics Inc. said its fiscal third-quarter profit, excluding costs for acquisitions, doubled to $17.3 million, or 24 cents a share, beating analyst estimates of 21 cents. Sales climbed 83% to $90.6 million.
* Harley-Davidson Inc.’s first-quarter earnings jumped 36% to $80.2 million, or 26 cents a share, beating forecasts by 2 cents, as revenue grew 22% to $681.1 million. The motorcycle maker also reported a gain of $6.9 million from the sale of its credit card program.
* International Paper Co.’s first-quarter profit climbed almost eightfold to $249 million, or 60 cents a share, 2 cents better than estimates, from $32 million, or 8 cents, a year ago, with help from cost-cutting. Sales rose 5.6% to $6.37 billion. The results were restated to include the Union Camp Corp. purchase last year.
* Research In Motion Ltd. said its fiscal fourth-quarter profit rose 10% to $3.2 million, or 5 cents a share. Revenue rose 42% to $25.8 million, boosted by surging sales of its flagship BlackBerry, an interactive pager with which users can send e-mail messages.
* Starmedia Networks Inc. said its first-quarter loss widened to $35.1 million, or 54 cents a share, from $15.6 million or 1.47 cents, a year ago. Analysts were expecting a much larger loss of 64 cents, according to IBES Inc. The Latin American Internet company’s sales soared to $10.1 million from $1.6 million.
