Eutelsat Group EUTLF has successfully launched 20 satellites into low Earth orbit (LEO) to boost the OneWeb constellation. The deployment will strengthen network services and elevate overall performance for customers, highlighted the company. These satellites were manufactured at Airbus U.S. Space & Defense, situated in Merritt Island, FL. This launch follows the anniversary of the merger between Eutelsat and OneWeb. 

In September 2023, Eutelsat became the first company to integrate geostationary (GEO) and LEO satellites, addressing the growing need for connectivity. After merging with OneWeb, Eutelsat combined its powerful GEO fleet with OneWeb's low-latency LEO constellation to offer comprehensive connectivity solutions.  Demand for multi-orbit services has increased in the past year, leading Eutelsat to collaborate with industry leaders like Intelsat, Inmarsat Maritime and Hughes to deliver innovative solutions across various sectors.

The satellites were launched on SpaceX's Falcon 9 rocket, which took off at 10:13 pm PT (local) on Oct. 19 from Space Launch Complex 4 East (SLC-4E) at Vandenberg Space Force Base in California. After a successful lift-off, the satellites were deployed in 10 batches over a span of 20 minutes, with all 20 satellites confirming signal acquisition. 

Solid Uptake of OneWeb LEO Services Drives EUTLF’s Top Line

The impact of OneWeb's services was particularly notable in the fourth quarter, wherein Fixed Connectivity revenues reached €82 million ($90.3 million), marking a remarkable 73.5% increase from the previous year. This surge can be attributed to a significant rise in OneWeb's LEO offerings, driven by the activation and gradual rollout of commercial agreements as the ground network became increasingly available.

In September 2024, Japan-based telecom giant SoftBank Group integrated EUTLF’s OneWeb LEO connectivity services into its offerings, aiming to enhance its broadband capabilities, delivering high-quality, bandwidth- and communication speed-guaranteed services to a broad spectrum of customers, including corporations and government entities.

Earlier in the year, it secured a multi-year, multi-million dollar agreement with Australia-based Sat One. Under this contract, Sat One will utilize EUTLF’s OneWeb LEO constellation for the “first-time activation of land-based services” across Australia’s remote northern and southern regions. Also, Africa’s prominent ICT-systems integrator NEC XON inked a strategic deal for connectivity capacity on the Eutelsat OneWeb Low Orbit constellation.

The continued traction of OneWeb’s LEO services is expected to significantly boost revenues and enhance financial performance, potentially driving the stock upward as EUTLF capitalizes on the growing demand for its innovative connectivity solutions.

Eutelsat Communications Price and Consensus

Eutelsat Communications price-consensus-chart | Eutelsat Communications Quote

Headquartered in Paris, France, EUTLF is a global provider of satellite communications, connectivity and broadcast services that offer television channels (more than 6,500) to cable and satellite homes. Also, it serves fixed and mobile telecommunications services, TV contribution markets, corporate networks and broadband markets for Internet Service Providers and transport, maritime and in-flight markets.

Stocks to Consider

Some stocks worth considering from the broader technology space are Itron, Inc. ITRI, Cirrus Logic, Inc. CRUS and BlackBerry Limited BB.  BB presently sports a Zacks Rank #1 (Strong Buy), whereas both ITRI & CRUS carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Double-digit year-over-year revenue growth across Cybersecurity and IoT businesses is boosting Blackberry’s performance. It delivered an earnings surprise of 131.3%, on average, in the trailing four quarters. In the last reported quarter, BB pulled off an earnings surprise of 100%. 

Itron is a technology and services company and one of the leading global suppliers of a wide range of standard, advanced, and smart meters and meter communication systems. It delivered an earnings surprise of 57%, on average, in the trailing four quarters. In the last reported quarter, ITRI pulled off an earnings surprise of 26%. 

Cirrus Logic’s performance is driven by increasing shipments in the smartphone market. Steady momentum in the laptop market and standout next-generation flagship smartphone design cushion the top line. CRUS delivered an earnings surprise of 56.6%, on average, in the trailing four quarters.

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