GSAT Earnings Prediction
The chart below shows how GSAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GSAT sees a -3.89% change in stock price 10 days leading up to the earnings, and a -2.61% change 10 days following the report. On the earnings day itself, the stock moves by +3.33%. This data can give you a slight idea of what to expect for the next quarter's release.
GSAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
61.18M
16.73%
-15.39%
Gross Margin
27.25%
21.00%
-30.52%
Operating Margin
-6.91%
-68.96%
-151.68%
Net Margin
-82.09%
185.33%
-697.45%
EPS
-0.42
-200.00%
-800.00%
No Data Available
GSAT Earnings Analysis
Globalstar Inc Corporation (GSAT.A) Earnings Conference Call
Positive
Revenue Increase Analysis: Total revenue increased 17% to $61.2 million in Q4 2024 compared to $52.4 million in Q4 2023, indicating strong growth.
Service Revenue Increase: Service revenue rose 18%, primarily driven by wholesale capacity revenue, showcasing the effectiveness of the company's service offerings.
IoT Revenue Growth: Commercial IoT revenue increased by 8% due to a rise in average subscribers and ARPU, reflecting the growing adoption of IoT services.
Q4 Adjusted EBITDA Growth: Adjusted EBITDA for Q4 2024 increased 21% to $30.4 million, with an improved adjusted EBITDA margin of 54%, up from 52% in 2023, demonstrating operational efficiency.
Record Revenue Achievement: For the full year 2024, total revenue reached a record $250.3 million, exceeding guidance and representing a 12% increase year-over-year.
Service Revenue Expansion: Record annual service revenue from the Commercial IoT business in 2024 highlights the successful expansion of the customer base and service offerings.
Strong Cash Position: The company ended 2024 with $391.2 million in cash, providing a strong financial position to support future growth initiatives.
2025 Revenue Guidance: Guidance for 2025 projects revenue between $260 million and $285 million, indicating continued growth and confidence in market opportunities.
Revenue Doubling Potential: The company expects total revenue to double in the first full year of service over the extended MSS network, reaching $500 million, which reflects strong long-term growth potential.
Strategic Software Solution Success: Successful demonstration of a software-defined communication solution with Parsons Corporation positions Globalstar for significant opportunities in high-value markets, particularly in defense applications.
Negative
Revenue vs. Operating Expenses: Total revenue growth of 17% to $61.2 million was overshadowed by a significant increase in operating expenses of $3.5 million, which could indicate rising costs that may affect future profitability.
EBITDA Margin Compression: Despite a record annual revenue of $250.3 million, the adjusted EBITDA margin is expected to compress to around 50% in 2025 due to strategic investments, suggesting potential short-term financial strain.
Scaling Challenges Against Competitors: The company remains considerably smaller than certain direct competitors, indicating challenges in scaling operations and market presence against larger players in the industry.
Revenue Stability Concerns: The reliance on wholesale capacity agreements raises concerns about revenue stability, as future revenues are tied to the performance and utilization of these agreements.
Forecasting Growth Uncertainty: The company has acknowledged that certain key growth opportunities are difficult to forecast with precision, which may lead to uncertainty in future revenue projections.
GSAT FAQs
How does GSAT typically perform around its earnings report dates?
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GSAT Earning Call Sentiment
Globalstar, Inc. (GSAT) Q4 2024 Earnings Call Transcript
GSAT.A
0.31%Positive
The earnings call summary presents a mixed picture. Financial performance is strong, with revenue and EBITDA growth, but management's refusal to provide guidance on satellite launches and feature specifics raises concerns. The Q&A section highlights uncertainties and lack of clear timelines, which may dampen investor enthusiasm. The reverse stock split and strong cash position are positives, but the market's response may be muted due to the lack of clear strategic updates. Given the market cap, the stock is likely to see a neutral reaction, within a -2% to 2% range.
