AST SpaceMobile, Inc. (NASDAQ:ASTS) shares are moving lower on Friday after the company reported worse-than-expected 2024 third-quarter fiscal earnings after the bell on Thursday.
What Happened: AST SpaceMobile shares fell about 13% after the company released earnings on Thursday. The earnings report included a loss of $1.10 per share, missing analyst estimates of a loss of 20 cents per share.
Furthermore, the company reported sales of $1.10 million, missing analyst estimates of $24.13 million. AST SpaceMobile reported other key pieces of financial data, including adjusted operating expenses of $45.3 million.
The company incurred about $374 million of gross capitalized property and equipment costs. It also reported $518.9 million in cash, cash equivalents and restricted cash.
Stepping back from finances, the company announced several key agreements, such as launch service agreements with Blue Origin for launches in 2025 and 2026. These agreements will enable the orbital deployment of up to 60 Block 2 BlueBird satellites.
The company's coverage will initially target key markets, including the U.S., Japan, and Europe.
Additionally, the company achieved initial validation of its AST5000 ASIC chip, with the necessary infrastructure in place for commissioning in 2025. The combination of the new chip and the larger Block 2 array will support enhanced data transmission.
"We achieved many significant milestones in the quarter and continue our momentum with several key pieces now in place," said Abel Avellan, founder, chairman and CEO of AST SpaceMobile.
"With the first five BlueBird satellites successfully unfolded and entering initial operations, our business is progressing according to plan. We've advanced our strategy across multiple efforts including progress on securing orbital launch capacity, growing our manufacturing capability, and expanding our customer ecosystem."
Following the earnings report, UBS analyst Christopher Schoell maintained a Buy rating on AST SpaceMobile and raised the price target from $30 to $31.
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ASTS Price Action: At the time of publication, AST SpaceMobile shares are moving 13.8% lower at $23.11, according to data from Benzinga Pro.
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