Satellite communications provider Globalstar (NASDAQ:GSAT) will be reporting earnings tomorrow after market close. Here’s what you need to know.
Globalstar beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $61.18 million, up 16.7% year on year. It was a mixed quarter for the company, with full-year revenue guidance beating analysts’ expectations but a significant miss of analysts’ EPS estimates.
Is Globalstar a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Globalstar’s revenue to grow 13% year on year to $63.83 million, a reversal from the 3.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Globalstar has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8% on average.
Looking at Globalstar’s peers in the telecommunication services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Iridium delivered year-on-year revenue growth of 5.4%, beating analysts’ expectations by 0.7%, and Lumen reported a revenue decline of 3.3%, topping estimates by 1.9%. Iridium traded down 7.1% following the results while Lumen was up 7.1%.
Read our full analysis of Iridium’s results here and Lumen’s results here.
There has been positive sentiment among investors in the telecommunication services segment, with share prices up 14.2% on average over the last month. Globalstar is up 7% during the same time and is heading into earnings with an average analyst price target of $52.50 (compared to the current share price of $19.75).
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