Globalstar Beats Expectations with $58.64M in Revenue and $0.01 Earnings Per Share
May 6, 2023
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Globalstar ($NYSEAM:GSAT) Inc. is a mobile voice and data satellite services provider based in the United States. The company offers a suite of services that enable customers to communicate via their computers, phones, and other data-enabled devices, which are powered by the satellite network. In its latest announcement, Globalstar reported GAAP earnings per share of $0.00, surpassing the forecast of $0.01, and revenue of $58.64M, exceeding estimates of $49.43M. This news was particularly encouraging for investors as it was well ahead of market expectations and helped to boost Globalstar’s stock price. The strong results were driven by increased demand for the company’s services, including satellite technologies and telecommunication services, in both the consumer and business markets.
The company also benefited from higher subscription fees, as well as improved efficiencies in its operations. In addition to the financial results, Globalstar also announced a number of strategic initiatives that it plans to undertake in order to further improve its competitive position within the industry. These impressive results demonstrate Globalstar’s commitment to delivering value to its customers and shareholders. The company has posted solid growth over the last few quarters and is well-positioned to continue to do so in the near future.
Earnings
GLOBALSTAR recently announced their financial results for FY2022 Q4 ending December 31, 2022. Compared to the same quarter of the previous year, GLOBALSTAR saw a 19.8% increase in total revenue, from $33.17 million to $41.31 million. This marks an impressive 3 year growth for GLOBALSTAR, where their total revenue kept on increasing. Furthermore, their net income loss for the quarter was only $5.34 million, indicating that their future prospects are strong.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Globalstar. More…
| Total Revenues | Net Income | Net Margin |
| 148.5 | -258.25 | -103.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Globalstar. More…
| Operations | Investing | Financing |
| 63.8 | -39.95 | -6.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Globalstar. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 833.39 | 518.62 | 0.17 |
Key Ratios Snapshot
Some of the financial key ratios for Globalstar are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.1% | – | -36.7% |
| FCF Margin | ROE | ROA |
| 16.1% | -15.1% | -4.1% |
Stock Price
GLOBALSTAR, a mobile satellite services provider, released their financial report for the past quarter that blew expectations out of the water. On Friday, the company’s stock opened at $1.0 and closed at $1.0, a 6.5% increase from its previous closing price of $0.9. The company was even able to turn a small profit, with earnings per share of $0.01.
The impressive financial performance of GLOBALSTAR has bolstered investor confidence in the company, sending the stock soaring 6.5% in one day and more than doubling its price since June. This is great news for the company, and could be a sign of even greater things to come. Globalstar_Beats_Expectations_with_58.64M_in_Revenue_and_0.01_Earnings_Per_Share”>Live Quote…
Analysis
GoodWhale conducted an analysis of GLOBALSTAR’s wellbeing, and according to our Star Chart system, GLOBALSTAR is classified as a ‘rhino’ — a type of company we conclude has achieved moderate revenue or earnings growth. Our analysis revealed that GLOBALSTAR is strong in liquidity, medium in growth, profitability and weak in asset, dividend. Additionally, GLOBALSTAR has an intermediate health score of 6/10 considering its cashflows and debt, which means that it is likely to safely ride out any crisis without the risk of bankruptcy. As such, this company may be of interest to value investors or those who are looking for companies that have the potential for long term growth. Globalstar_Beats_Expectations_with_58.64M_in_Revenue_and_0.01_Earnings_Per_Share”>More…
Peers
As the world becomes increasingly more connected, the competition for telecommunications companies to provide affordable and reliable service has become more heated. Among those vying for a piece of the pie are Globalstar Inc and its competitors, PT XL Axiata TBK, Toople PLC, and KonaTel Inc. All four companies are looking to provide the best service at the most competitive prices, and all have their own strengths and weaknesses. It remains to be seen who will come out on top in this rapidly changing industry.
– PT XL Axiata TBK ($IDX:EXCL)
PT XL Axiata TBK is one of the largest telecommunications companies in Indonesia. The company has a market cap of 26.24T as of 2022 and a Return on Equity of 12.24%. PT XL Axiata TBK provides a wide range of telecommunications services, including mobile voice and data, fixed voice and data, and broadband. The company has a strong presence in Indonesia’s fast-growing mobile market with over 60 million subscribers.
– Toople PLC ($LSE:TOOP)
Toople PLC is a telecommunications company that provides broadband and phone services to businesses in the United Kingdom. The company has a market cap of 456.33k as of 2022 and a Return on Equity of 73.99%. Toople PLC was founded in 2003 and is headquartered in London, United Kingdom.
– KonaTel Inc ($OTCPK:KTEL)
KonaTel Inc is a publicly traded company with a market cap of 50.35M as of 2022. The company has a Return on Equity of -28.03%. KonaTel is a provider of cloud-based communication solutions. The company’s solutions include VoIP, SIP trunking, video conferencing, and more.
Summary
Globalstar is a provider of mobile satellite services and is traded on the Nasdaq stock exchange. For the most recent quarter, it reported earnings per share (EPS) of $0.00, which beat analysts’ estimates by $0.01. The stock price rose significantly the same day. Investing in Globalstar can be considered a speculative play given the current market environment and the company’s past performance.
However, investors should pay attention to the company’s fundamentals, as well as its ability to stay competitive and generate growth in a crowded and volatile mobile satellite services market. Analysts also recommend evaluating management’s strategy and assessing the company’s financial standing to ensure that Globalstar is able to generate sufficient cash flow to support its operations and future growth plans.
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