AST SpaceMobile Inc (ASTS) reported a loss for its second quarter, with sales reaching $900,000. The company’s adjusted loss per share came in at 51 cents, surpassing analyst estimates of a 22-cent loss. Despite the financial setback, AST SpaceMobile emphasized a strategic investment from Verizon, which involves a $100 million financial commitment. This investment signifies Verizon’s confidence in AST SpaceMobile’s mission to provide cellular service to remote areas using satellites.
AST SpaceMobile ended the quarter with a strong cash position of $287.6 million in cash, cash equivalents, and restricted cash. They also have $51.5 million in additional liquidity accessible through their senior secured credit facility.
Abel Avellan, founder, chairman, and CEO of AST SpaceMobile, stated, “We stand at a pivotal moment for AST SpaceMobile. The arrival of our first five commercial satellites at the launch site marks the culmination of years of relentless innovation and perseverance, in partnership with industry leaders like AT&T, Google, Verizon, Vodafone and Rakuten, among others.”
Following the earnings announcement, several analysts adjusted their price targets for AST SpaceMobile. B. Riley Securities analyst Mike Crawford maintained a Buy rating and raised the price target from $15 to $26. UBS analyst Christopher Schoell also maintained a Buy rating and increased the price target from $13 to $30.
Despite the second-quarter loss, the strategic investment from Verizon and the positive analyst sentiment suggest optimism surrounding AST SpaceMobile’s future prospects.
