AST SpaceMobile Inc (ASTS) shares experienced a significant surge on Thursday, fueled by the company’s announcement of its second-quarter financial results and plans for a satellite launch in early September.
Despite reporting a second-quarter adjusted loss of 51 cents per share, missing analyst estimates of a loss of 22 cents per share, AST SpaceMobile generated $900,000 in sales, exceeding expectations.
“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,” said Abel Avellan, founder, chairman, and CEO of AST SpaceMobile. “The upcoming orbital launch is a significant step toward fulfilling our mission to eliminate dead zones and empower communities worldwide with space-based cellular broadband connectivity.”
The company’s first five commercial satellites, aptly named BlueBirds, are scheduled for launch in the first half of September. These satellites are equipped with the largest-ever commercial communications arrays to be deployed in low Earth orbit. Following their in-orbit activation, AST SpaceMobile anticipates providing initial nationwide, non-continuous service to beta test users of AT&T and Verizon in the coming months.
This launch represents a major leap forward for AST SpaceMobile in their mission to provide seamless cellular broadband connectivity to billions of mobile users globally. The company ended the quarter with a strong financial position, holding $287.6 million in cash, cash equivalents, and restricted cash. They also have an additional $51.5 million in liquidity available through their senior secured credit facility.
Following the announcement, B. Riley Securities analyst Mike Crawford maintained his Buy rating for AST SpaceMobile and raised the price target from $15 to $26. UBS also expressed confidence in the company, maintaining a Buy rating and boosting their price target from $13 to $30.
The positive sentiment surrounding the satellite launch and financial results has been reflected in AST SpaceMobile’s share price. At the time of publication, AST SpaceMobile shares were up 32.8% at $27.64.
