Material Deterioration

Speedcast International ((SDA)) is being punished severely by the market after delivering a downgrade to 2018 earnings estimates, as price pressures remain evident across the satellite services industry. The main driver of weakness was the energy division as an expected turnaround did not materialise.
Macquarie notes a material deterioration in market conditions, given the company stated a year ago that it expected an upswing in 12-18 months. The broker remains cautious, given the high hurdles for offshore developments.