EchoStar 'A'

A U.S. trustee has asked a bankruptcy court to appoint an external examiner to investigate $1.5 billion in transactions between EchoStar and its insolvent subsidiary Hughes Satellite Systems. Bondholders allege EchoStar stripped assets from Hughes through self-dealing, including an allegedly noncompetitive lease for the Jupiter 3 satellite, dividend payments of more than $1 billion and unusually large tax refunds. Hughes filed for Chapter 11 protection on Aug. 2; liabilities are estimated at $1 billion to $10 billion, and a judge is expected to review the examiner appointment soon. » Plus sur de.investing.com

EchoStar's stock dropped about 7% after SpaceX released its quarterly results. SpaceX beat revenue estimates with $7.8 billion, but reported a sharp rise in capital expenditures from $2.83 billion to over $18 billion, of which $15.83 billion was for AI infrastructure. Despite strong revenue growth at Starlink (+66%) and AI revenues (≈+250%), the rise in spending weighed on investor sentiment; analysts also point to valuation risks from lock-up periods expiring through summer 2027. » Plus sur de.investing.com

EchoStar reported adjusted earnings per share of $24.12 for Q2 2026, well above the consensus expectation of a $0.21 loss, with the large gain likely influenced by one‑time effects from asset sales and capital‑structure changes. Revenue was $3.58 billion, missing the analysts’ estimate of $3.64 billion by about 1.65%, suggesting weakness in the core business. Hughes has filed for Chapter 11 protection; EchoStar emphasizes the filing is limited to Hughes units. The company holds roughly $14–15 billion in cash and 261.8 million SpaceX shares as key assets. Management plans to reduce debt (expects about $5 billion upon completion of the SpaceX transaction) but sees high tax and decommissioning costs (estimated $5–7 billion) and restrictions on share buybacks as risks; the stock reacted muted in premarket trading. » Plus sur de.investing.com