Globalstar Beats on the Top Line

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Globalstar (NAS: GSAT) reported earnings March 12. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Globalstar missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP loss per share grew.

Margins contracted across the board.

Revenue details
Globalstar recorded revenue of $17.4 million. The one analyst polled by S&P Capital IQ wanted to see a top line of $19.0 million on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $16.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.05. The one earnings estimate compiled by S&P Capital IQ was for -$0.06 per share on the same basis. GAAP EPS were -$0.11 for Q4 versus -$0.06 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 4.6%, 2,010 basis points worse than the prior-year quarter. Operating margin was -127.5%, 3,820 basis points worse than the prior-year quarter. Net margin was -193.9%, 8,450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $19.3 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $95.6 million. The average EPS estimate is -$0.29.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 65 members out of 80 rating the stock outperform, and 15 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Globalstar a green thumbs-up, and three give it a red thumbs-down.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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