Globalstar, Inc. GSAT is scheduled to report fourth-quarter 2024 results on Feb. 27, after the closing bell.

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The Zacks Consensus Estimate for revenues is pegged at 61.2 million, indicating an increase of 16.73% from a year ago.

The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 6 cents per share, suggesting an improvement of 60% from the year-ago quarter’s reported figure. 

GSAT’s earnings met the Zacks Consensus Estimate in three of the last four quarters while missing once. In the past year, shares have lost 17.4% against the Zacks Satellite and Communication industry's growth of 46.9%.

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Factors at Play

Higher service revenues and strong subscriber equipment sales are likely to have aided GSAT’s top-line performance in the fourth quarter. Globalstar operates across several business segments, each capitalizing on its valuable spectrum assets. These segments include consumer wholesale, consumer retail, government services, commercial IoT, XCOM RAN and licensing for Band 53.

Strength in wholesale services across both the government and consumer markets bodes well. GSAT is advancing to the alpha testing phase for the fully developed system, which will support both the consumer retail and commercial IoT businesses. Management anticipated to have moved into beta testing with key customers in the fourth quarter.

Globalstar’s XCOM RAN solution is set to bolster 5G architecture with a focus on mission-critical applications. This innovative, high-performance 5G system is designed to seamlessly address automation and industrial needs, facilitating deployment for critical infrastructure.  A key global retailer has already begun deploying the XCOM RAN solution, with full-scale implementation planned in 2025.

GSAT’s Band n53 is a steady and growing spectrum resource without borders, gaining momentum as a critical enabler of 5G innovation. Band n53 MHz is combined with XCOM RAN. It is currently deployed in 12 countries, serving roughly 1 billion people.

Globalstar, Inc. Price and EPS Surprise

Globalstar, Inc. price-eps-surprise | Globalstar, Inc. Quote

However, rising operating costs to support accretive investments are likely to put pressure on its margins. Macroeconomic uncertainties coupled with stiff competition from other key players in the satellite industry could pose headwinds.

Major Developments

On Feb. 7, 2025, Globalstar transferred its listing to Nasdaq. Its board of directors has authorized a reverse stock split of its common stock pertaining to this listing transfer. The reverse stock split is aimed at liquidity improvement and increased investment participation from diverse institutional investors.

On Jan. 7, 2025, Globalstar and Peiker Holding Gmbh teamed up to integrate satellite-based emergency services and telematics features into vehicles.

On Dec. 20, 2025, Globalstar shared a roadmap for its future growth at its Investor Day event by capitalizing on its core assets. It also provided an updated financial outlook.

On Dec. 19, 2024, Globalstar partnered with Hawk Networks to streamline access to its Band 53 spectrum, transforming how operators build and expand their networks. The deal offers a more efficient, flexible approach to spectrum access, enabling faster and cost-effective network expansion.

What Does Our Model Predict for GSAT?

Our proven model does not predict an earnings beat for GSAT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

GSAT has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Kimbell Royalty Partners, LP KRP currently has an Earnings ESP of +24.32% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

KRP is scheduled to report quarterly earnings on Feb. 27. The Zacks Consensus Estimate for its to-be-reported quarter’s bottom line is pegged at 19 cents. The consensus estimate for revenues is pegged at $80.3 million. Shares of KRP have gained 4.2% in the past year.

Dycom Industries, Inc. DY currently has an Earnings ESP of +4.97% and a Zacks Rank of 2. It is set to release fourth-quarter results on Feb. 26.

DY’s long-term earnings growth rate is 16.49%. The Zacks Consensus Estimate for earnings is pegged at 91 cents per share, which implies a year-over-year increase of 15.2%. Shares of DY soared 38.2% in the past year.

Pacira BioSciences, Inc. PCRX has an Earnings ESP of +2.34% and a Zacks Rank #1 at present. It is scheduled to release fourth-quarter results on Feb. 27.

The Zacks Consensus Estimate for earnings is pegged at 86 cents per share, which implies a year-over-year decrease of 3.4%. Shares of PCRX plunged 15.1% in the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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