CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and can afford the risks. Trading CFDs is high risk and is not suitable for everyone. Refer to our PDS and Target Market Determination. AFSL 513393
Open platformOpen platform

Globalstar Q3 revenue falls on lower service sales, posts net loss

By Reuters News


Overview

  • U.S. satellite telecom firm's Q3 revenue fell yr/yr, driven by lower wholesale and subscriber service revenue

  • Company posted Q3 net loss, impacted by higher interest expense and lower income from operations

  • Commercial IoT subscriber activations and equipment sales rose, partially offsetting declines in other segments


Outlook

  • Company continues to suspend financial outlook due to pending Amazon transaction


Result Drivers

  • COMMERCIAL IOT GROWTH - Co said record high Commercial IoT subscriber activations and a 25% increase in gross activations boosted IoT service revenue and equipment sales

  • WHOLESALE AND SUBSCRIBER CHURN - Lower wholesale capacity service revenue and declines in Duplex and SPOT service revenue, mainly due to subscriber churn, weighed on total service revenue

  • HIGHER OPERATING EXPENSES - Increased marketing, general and administrative costs, mainly from legal and professional fees related to the Amazon transaction, and higher network operating costs affected income from operations


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.14


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the wireless telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Globalstar, Inc. is $90.00, about 6.4% above its November 4 closing price of $84.58


Reuters Recommended Reads

  • Nov 5 - Satellite firm SES tops Q3 earnings estimates

  • Nov 4 - Qualcomm signs major 5G infrastructure deal with SpaceX for Starlink Mobile network

  • Nov 4 - Arm forecasts third-quarter revenue above estimates on AI spending boom


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.