Global Eagle Entertainment Business Transformation

Global Eagle Entertainment

Global Eagle Entertainment, Inc (NASDAQ:ENT): Stock price for Global Eagle has been under pressure over the last three years. Lower margins and escalating losses are contributing to the price crash. 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.

It is a provider of media, content, connectivity and data analytics to markets across air, sea, and land.

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.

The company is 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.

The CEO said: “We continue to expect a minimum of 25% Adjusted EBITDA growth in 2018 versus 2017.  Looking forward to the third quarter of 2018, we are excited to activate aircraft from our recent new wins onto what is already the largest network of Ku-connected, single-aisle aircraft in the world.”

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Stock Price Movement and Price Target

Global Eagle Entertainment

Source Image: finviz.com

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.

Featured Image: aircraft-commerce.com

About the author: Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.