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Bull Of The Day: BlackSky Technology (BKSY)

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BlackSky Technology (BKSY - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth.  The company is a provider of real time geospatial intelligence and global monitoring services. Let’s explore more about this company in this Bull of The Day article.

Description

BlackSky Technology, Inc. is a space-based intelligence company, which engages in the business of delivering real-time imagery, analytics, and high-frequency monitoring of most critical and strategic locations, economic assets, and events. The firm is also involved in providing geospatial intelligence, imagery and related data analytic products and services, and mission systems that include the development, integration, and operation of satellite and ground systems to government and commercial customers. The company was founded in 2014 and is headquartered in Herndon, VA.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

BlackSky Technology (BKSY - Free Report) has a good earnings history with the company topping the Zacks Consensus in three of the last four quarters.

Over the course of the last four quarters the average positive earnings surprise works out to be 10.7%.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Estimates are moving higher for BKSY.

This quarter has increased from a loss of $0.70 to a loss of $0.61.

Next quarter has also lifted from a loss of $0.42 to a loss of $0.29.

The moves in the quarterly estimates have occurred over the last 30 days.

The full year fiscal 2024 has increased from a loss of $2.60 to a loss of $2.33 over the last 60 days.

Next year has seen a slight increase from a loss of $1.72 to a loss of $1.20 over the last 60 days.

Growth

For fiscal 2024 the company is expected to show 14% growth with $107.7 million in sales.  Next year analysts are calling for sales of $134.4M for growth of 24.75%.  Investors love to see revenue acceleration like this.

Valuation

No earnings means no PE to lean on, so we go straight to price to book.  At 1.7x book, the value conscious investors should like this stock as well.  Price to sales at 1.2x is very low, so there is a lot of room to run here.

Margins are negative for this year and next, but they should make 5K - 8K  basis point moves in the coming quarters.


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