AST SpaceMobile (ASTS) shares are in focus on Thursday after the satellite broadband company announced a new U.S. Space Force contract that grows its footprint beyond commercial connectivity applications.
ASTS will support contractor STR on a USSF program aimed at advancing space-based sensing capabilities. The initiative will evaluate how the company’s satellite technology could be adapted for defense and security applications beyond its core communications business.
At the time of this writing, AST SpaceMobile stock is down a concerning 75% versus its year-to-date high.
Significance of the USSF Contract for ASTS Shares
For ASTS shares, the significance of this new USSF contract awarded through STR extends beyond the immediate revenue opportunity. Why? Because it underscores the versatility of the company’s BlueBird platform and reinforces that its technology may have applications across both commercial and defense markets.
While the financial terms of the latest contract were not disclosed, AST SpaceMobile's growing collaborations with government agencies signal diversification beyond direct-to-device consumer connectivity. That strengthens the long-term investment case for the Nasdaq-listed firm.
What to Expect From AST SpaceMobile’s Q3 Earnings
In the immediate term, AST SpaceMobile shares could benefit from Q3 earnings set to be released on Nov. 9. Consensus is for the firm to report a loss of $0.22 in earnings per share (EPS) for its third fiscal quarter, which would represent a nearly 9% improvement on a year-over-year basis.
On the flip side, however, the technical setup heading into ASTS’s quarterly print signals continued pain ahead. The company currently sits decisively below its key moving averages (MAs), with an RSI in the mid-20s indicating intense selling pressure.
Wall Street’s Consensus View on AST SpaceMobile Stock
Investors should note, however, that Wall Street firms remain largely constructive on ASTS stock heading into its earnings event, even though it’s trading at a rather stretched 204x sales at the time of writing.
According to Barchart, the consensus rating on AST SpaceMobile sits at “Moderate Buy,” with the mean price objective of nearly $78 indicating potential upside of more than 100% from current levels.
On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.