Sunday, May 19, 2019 3:42:14 PM
Why Globalstar Stock Dropped 10% Today
What happened
Shares of communications satellite operator Globalstar (NYSEMKT: GSAT) are down 10.5% as of 2:45 p.m. EDT on Thursday -- on no news that I can discern. That's probably frustrating for shareholders. But for a stock, the share price of which is calculated in pennies ($0.56 as of this writing), such volatility is also par for the course.
Every cent Globalstar stock goes up or down swings the valuation by nearly 2 full percentage points!
a close up of a toy: Frightened cartoon character riding a rocket pointing down
© Getty Images Frightened cartoon character riding a rocket pointing down
So what
And yet, just because there's no news about Globalstar to explain today's particular slide in share price, that doesn't mean there's no news about Globalstar worth discussing.
Lost in the rush of earnings releases from more-substantial companies, Globalstar reported its own fiscal Q1 2019 earnings earlier this month. In the absence of any more recent news, therefore, let's look at what Globalstar said back then. After all, it did spark a 25% run in the stock over the six days following earnings!
On May 2, Globalstar reported a 5% increase in quarterly revenue to $30.1 million, and a $0.02 per share profit. That was a whole lot better than the $0.02 per share loss Wall Street had predicted, and served as a great excuse for investors to bid the stock up.
Now what
That being said, Globalstar's profits came entirely by way of derivatives gain. Its core business actually recorded an operating loss of $18.3 million (40% worse than in last year's Q1). This suggests that Globalstar's core business may not be as healthy as the earnings beat initially suggested.
Now that investors have had a couple of weeks to digest this news, they may be starting to rethink their post-earnings optimism about Globalstar stock.
Recent GSAT News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2024 08:50:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/12/2024 08:06:24 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/11/2024 08:16:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/03/2024 03:34:53 PM
- Liquid Intelligent Technologies and Globalstar Partner to Deliver High-speed 5G Access Solutions Across Africa, the Middle East, and the Gulf • Business Wire • 08/21/2024 01:23:00 PM
- FCC Reauthorizes Globalstar’s HIBLEO-4 Constellation • Business Wire • 08/19/2024 01:27:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2024 01:23:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/08/2024 12:02:01 PM
- Globalstar Announces Second Quarter 2024 Financial Results • Business Wire • 08/08/2024 12:00:00 PM
- Globalstar, Inc. Earnings Release and Call Notice • Business Wire • 07/26/2024 08:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:17:17 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/03/2024 05:03:28 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/21/2024 08:34:17 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/17/2024 12:02:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 08:25:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 08:24:58 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 09:26:08 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/08/2024 08:15:09 PM
- Globalstar Announces First Quarter 2024 Financial Results and Operational Updates • Business Wire • 05/08/2024 08:15:00 PM
- Globalstar, Inc. Earnings Release and Call Notice • Business Wire • 05/03/2024 09:03:00 PM
- Globalstar Celebrates 10,000 Rescue Milestone with SPOT Brand Giveaway • Business Wire • 04/24/2024 12:30:00 PM
- Globalstar to Participate in Upcoming Investor Conferences • Business Wire • 04/18/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 01:29:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/08/2024 01:51:54 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/08/2024 01:51:43 AM
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