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Orbital 3Q21 results and Vodafone 1H22 schedule -3

09:09 15-Nov-21


The Orbital conference call has just concluded.  Management cites supply chain and storm issues like everyone else.  However, unlike some others, it says those will abate in the coming two quarters.  It also says that acquisition of transformational and highly accretive electric power T&D platform company is a top priority, and that its metamorphosis will be complete at that point, yet it also anticipates more small telecom additions.  Recent operating history calls in to question what is meant by highly accretive in any case.

Financially, it can only say that it expects to have positive EBITDA in early 2022.  That's somewhat supported by the backlog, but less than half of that is scheduled for the next year, and about a third is RDOF, extending out about 3-5 years., with more on the way.  Regardless, this sort of business growth is not anywhere close to what I was looking for when I initiated coverage of CUI.  That said, the new CEO seems to be politically connected, so I'll continue to monitor it, especially ahead of midterm elections, despite lack of investment interest.

On 11/15/21 8:23 AM, Esekla wrote:
Orbital Energy Group has released its third quarter results:
  • a loss of 16 cents per share misses by 6 cents
  • from $30.9M of revenue, which misses by $0.9M
Everything looks as expected here.  Management points out that revenue more than doubled YoY.  I point out that share count did the same.  The conference call is beginning now, but I may not write further.

Instead, I'll use this space to document that Vodafone has scheduled its first half results presentation for tomorrow., but ahead of that we have Vantage Towers results, whose revenue rose 2.5% sequentially to €494M.  The company upgrated its recurring annual FCF by €15M to €410+/-5M.  Furthermore, tenancy ratio increased to 1.42x from 1.39x with over 670 non-Vodafone tenants added.  I see this as steady, though not particularly impressive, progress towards the company's stated goals.  VOD shares are down 1% on both sides of the Atlantic this morning, though that may have more to do with the USD strength I pointed out on Friday.  I will report on tomorrow's results and call separately.