Globalstar (GSAT, Financial) has entered into a collaborative research and development agreement with the United States Army. This partnership aims to assess Globalstar's innovative satellite data solutions for the Department of Defense. The focus will be on incorporating low probability of intercept and low probability of detect communications, beneficial for covert operations, unmanned systems, and logistical tracking. The collaboration also seeks to enhance applications for tagging, tracking, and locating across a spectrum of mission-specific scenarios.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Globalstar Inc (GSAT, Financial) is $3.33 with a high estimate of $5.00 and a low estimate of $0.99. The average target implies an downside of 88.02% from the current price of $27.81. More detailed estimate data can be found on the Globalstar Inc (GSAT) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Globalstar Inc's (GSAT, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Globalstar Inc (GSAT, Financial) in one year is $27.27, suggesting a downside of 1.92% from the current price of $27.805. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Globalstar Inc (GSAT) Summary page.
GSAT Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total revenue increased by 6% to $60 million compared to the prior year period.
- Service revenue saw a 7% increase, primarily driven by wholesale capacity services.
- Globalstar Inc (GSAT, Financial) successfully launched a two-way satellite IoT solution, expanding beyond traditional one-way tracking capabilities.
- The company opened a new state-of-the-art satellite operations control center, enhancing satellite fleet management capabilities.
- Strategic appointments of seasoned executives are expected to drive growth in key business segments.
Negative Points
- Higher cash costs to support excom negatively impacted adjusted EBITA by $1.3 million.
- Adjusted EBITA margin decreased by approximately 200 basis points compared to the prior year period.
- The sales cycle for the excom ran product is long and dependent on factors outside of Globalstar Inc (GSAT)'s control.
- There is uncertainty regarding the launch dates for the 50 Aurora satellites, as the second launch has not been contracted yet.
- The private network cellular network business has been less successful than expected, impacting the anticipated growth from CBRS.
