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