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AST SpaceMobile ((ASTS - Free Report) ) is a $7.4 billion provider of specialized communications satellites that offer cellular broadband connectivity directly to unmodified cell phones from space.
The company claims they are building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio.
The SpaceMobile Service is currently planned to be provided by a constellation of high-powered, large phased-array satellites in low Earth orbit ("LEO") using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
5 BlueBirds Take Flight and Give Lift to Sales
Last year the company announced the successful deployment of its initial set of five commercial satellites, BlueBirds. Utilizing large phased array antennas, AST SpaceMobile's technology is backed by more than 3,450 patents and patent-pending claims. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment.
From the AST SpaceMobile website...
These first five satellites are built on the success of our in-orbit BlueWalker 3 satellite and will provide U.S. nationwide non-continuous service with over 5,600 cells in premium low-band spectrum, with a planned 10-fold increase in processing bandwidth.
Obviously, the young upstart competes with the giant SpaceX Starlink system. But it has grown impressively fast since launching its first satellite six years ago and going public in 2021.
This year's projected sales growth sees a massive leap of over 1,200% from $4.4 million to $59 million.
And for next year, the consensus among 3 analysts is for the topline to jump another 370% to over $275 million.
This makes the stock trade in price-to-sales terms for 125X this year and "only" 27X next year.
The Profit Outlook
But a lofty P/S valuation is not the reason that ASTS is a Zacks #5 Rank.
ASTS fell into the cellar of the Zacks Rank in March after their Q4 report, which saw the company beat modestly on earnings but miss fairly big on revenues of $1.92 million, which missed the consensus estimate of $3 million.
Net loss in the reported quarter was $35.9 million or a loss of 18 cents per share compared with a net loss of $31.9 million or a loss of 35 cents per share in the year-ago quarter. The company reported a non-GAAP net loss of 12 cents per share, beating the Zacks Consensus Estimate by 2 cents.
For 2024, net loss was $300.1 million or a loss of $1.94 per share compared with a net loss of $87.6 million or a loss of 1.07 cents per share in 2023.
In response to this report, analysts took the 2025 EPS consensus down 12% from a loss of 66-cents to -$0.74. And 90 days ago, the projected loss for this year was only 45-cents.
Bottom line: ASTS appears to have a fast growth trajectory ahead of it as the company grabs new satellite market opportunities. If the estimate picture can stabilize, and analysts have more visibility, there will be a buy opportunity soon. The Zacks Rank will let you know.
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Bear of the Day: AST SpaceMobile (ASTS)
AST SpaceMobile ((ASTS - Free Report) ) is a $7.4 billion provider of specialized communications satellites that offer cellular broadband connectivity directly to unmodified cell phones from space.
The company claims they are building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio.
The SpaceMobile Service is currently planned to be provided by a constellation of high-powered, large phased-array satellites in low Earth orbit ("LEO") using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
5 BlueBirds Take Flight and Give Lift to Sales
Last year the company announced the successful deployment of its initial set of five commercial satellites, BlueBirds. Utilizing large phased array antennas, AST SpaceMobile's technology is backed by more than 3,450 patents and patent-pending claims. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment.
From the AST SpaceMobile website...
These first five satellites are built on the success of our in-orbit BlueWalker 3 satellite and will provide U.S. nationwide non-continuous service with over 5,600 cells in premium low-band spectrum, with a planned 10-fold increase in processing bandwidth.
Obviously, the young upstart competes with the giant SpaceX Starlink system. But it has grown impressively fast since launching its first satellite six years ago and going public in 2021.
This year's projected sales growth sees a massive leap of over 1,200% from $4.4 million to $59 million.
And for next year, the consensus among 3 analysts is for the topline to jump another 370% to over $275 million.
This makes the stock trade in price-to-sales terms for 125X this year and "only" 27X next year.
The Profit Outlook
But a lofty P/S valuation is not the reason that ASTS is a Zacks #5 Rank.
ASTS fell into the cellar of the Zacks Rank in March after their Q4 report, which saw the company beat modestly on earnings but miss fairly big on revenues of $1.92 million, which missed the consensus estimate of $3 million.
Net loss in the reported quarter was $35.9 million or a loss of 18 cents per share compared with a net loss of $31.9 million or a loss of 35 cents per share in the year-ago quarter. The company reported a non-GAAP net loss of 12 cents per share, beating the Zacks Consensus Estimate by 2 cents.
For 2024, net loss was $300.1 million or a loss of $1.94 per share compared with a net loss of $87.6 million or a loss of 1.07 cents per share in 2023.
In response to this report, analysts took the 2025 EPS consensus down 12% from a loss of 66-cents to -$0.74. And 90 days ago, the projected loss for this year was only 45-cents.
Bottom line: ASTS appears to have a fast growth trajectory ahead of it as the company grabs new satellite market opportunities. If the estimate picture can stabilize, and analysts have more visibility, there will be a buy opportunity soon. The Zacks Rank will let you know.