Globalstar Beats on Both Top and Bottom Lines

Before you go, we thought you'd like these...
Before you go close icon

Globalstar (OTCPK: GSAT) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Globalstar beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share contracted.


Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Globalstar booked revenue of $19.3 million. The two analysts polled by S&P Capital IQ expected to see a top line of $18.5 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $16.7 million.

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

EPS details
EPS came in at -$0.05. The two earnings estimates compiled by S&P Capital IQ forecast -$0.07 per share. GAAP EPS were -$0.05 for Q1 against -$0.07 per share for the prior-year quarter.

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 45.9%, 430 basis points worse than the prior-year quarter. Operating margin was -95.1%, 640 basis points worse than the prior-year quarter. Net margin was -129.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $20.7 million. On the bottom line, the average EPS estimate is -$0.07.

Next year's average estimate for revenue is $85.4 million. The average EPS estimate is -$0.27.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 63 members out of 78 rating the stock outperform, and 15 members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Globalstar a green thumbs-up, and four give it a red thumbs-down.

Looking for alternatives to Globalstar? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

The article Globalstar Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners