Globalstar Revenue Spikes 27% Despite Missing Estimates, Projects Further Growth As Satellite Services Expand
Portfolio Pulse from Anusuya Lahiri
Globalstar, Inc (NYSE: GSAT) reported a 27% year-on-year increase in Q4 fiscal 2023 sales to $52.4 million, slightly below the consensus of $52.9 million. The company's EPS was $0.01, beating the consensus of $0.00, but its stock price declined post-results. Adjusted EBITDA rose 37% Y/Y to $25.1 million, while the loss from operations and net loss increased. GSAT expects FY24 revenue of $225 million to $250 million, below the consensus of $251.5 million, and an adjusted EBITDA margin of about 50%. GSAT shares dropped 3.45% in premarket trading.
February 28, 2024 | 2:27 pm
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Globalstar reported a 27% increase in Q4 sales but missed revenue estimates slightly. EPS exceeded expectations. The company anticipates lower FY24 revenue than consensus, leading to a premarket stock price drop of 3.45%.
The slight miss in revenue estimates and the lower-than-expected FY24 revenue forecast could contribute to negative investor sentiment in the short term, as evidenced by the premarket stock price decline. However, the EPS beat indicates some operational efficiency, which might mitigate the negative impact slightly.
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