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 -4.07% change in stock price 10 days leading up to the earnings, and a -2.83% change 10 days following the report. On the earnings day itself, the stock moves by +3.79%. 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
72.31M
25.35%
19.74%
Gross Margin
39.22%
22.37%
30.86%
Operating Margin
13.37%
275.56%
-668.94%
Net Margin
13.74%
228.53%
-185.66%
EPS
0.00
--
-100.00%
No Data Available
GSAT Earnings Analysis
Globalstar, Inc. Corporation (GSAT.A) Earnings Conference Call
Positive
Record Revenue Increase: 25% increase in total revenue from Q3 2023, reaching a record $72 million for the quarter.
Service Revenue Surge: Service revenue increased 28% over the same period, driven primarily by wholesale capacity revenue, including a $7.5 million performance bonus.
EBITDA Margin Improvement: Adjusted EBITDA increased 34% with a margin of 59%, up from 55% in the prior year's third quarter.
Cash Position and Leverage Ratio: Cash on hand at the end of the quarter was $52 million, with a healthy leverage ratio of 2.9 times.
Revenue Guidance Increase: Raised revenue guidance for full year 2024 to a range of $245 million to $250 million, and adjusted EBITDA margin guidance to 54%.
Negative
One-Time Revenue Adjustment: 1. Out-of-Period Revenue Impact: The reported $72 million in total revenue included a one-time performance bonus of $7.5 million, indicating that without this item, revenue growth may not be as strong as presented.
Cash Liquidity Issues: 2. Cash Position Concerns: Globalstar ended the quarter with only $52 million in cash, raising concerns about liquidity as they prepare for significant capital expenditures related to new satellite launches.
Revenue Variability Outlook: 3. Variable Revenue Guidance: The CFO indicated that revenue may continue to experience variability, suggesting that the financial outlook could be less stable than previously anticipated, particularly with the need to strip out one-time items from revenue calculations.
Debt Refinancing Uncertainty: 4. Debt Refinancing Risks: The company has engaged in refinancing its 13% notes, which, while potentially beneficial, introduces uncertainty regarding future interest obligations and overall financial health.
Satellite Revenue Delays: 5. Delayed Revenue from New Satellites: The timeline for revenue generation from the new satellite constellation remains unclear, with expectations that significant revenue increases will not materialize until after the satellites are launched, potentially impacting short-term financial performance.
GSAT FAQs
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GSAT Earning Call Sentiment
Globalstar, Inc. (GSAT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
GSAT.A
-7.14%Positive
The earnings call summary reveals strong financial performance with a 25% revenue increase and improved EBITDA margins. The company raised its revenue and EBITDA margin guidance for 2024, indicating confidence in future growth. A significant partnership extension and positive shareholder return plans further bolster sentiment. The Q&A section highlighted management's optimism and ongoing progress, despite some vague responses. Overall, the combination of strong financials, raised guidance, and strategic initiatives suggests a positive stock price movement, likely between 2% to 8%, given the company's market cap.
