AST SpaceMobile to Post Q2 Earnings: What's in the Cards?

AST SpaceMobile ASTS is set to report its second-quarter 2024 results on Aug 14, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 11.11%, with the bottom line beating the Zacks Consensus Estimate by 2 cents. The company is expected to report a top-line improvement year over year, backed by healthy momentum in both the government and private sector.

Factors at Play

During the quarter, AST SpaceMobile inked a definitive commercial agreement with AT&T. Per the deal, AT&T is set to leverage ASTS' Space-based direct-to-mobile technology to deliver seamless and reliable connectivity to consumers and expand coverage into remote, rural and hard-to-reach locations across the continental United States.

Verizon, another major player in the U.S. telecom industry, also signed a deal with the company to deliver seamless connectivity to remote corners of the country utilizing ASTS' satellite network. Its commercial communication technologies are also gaining traction in the government sector for mission-critical applications. These developments will likely have a favorable impact on the company's earnings.

For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $2 million. The company didn't generate any revenues from in the second quarter of fiscal 2023. 

The consensus estimate for adjusted earnings per share indicates a loss of 19 cents per share. It incurred a loss of 24 cents per share in the year-ago quarter.

Earnings Whispers

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

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%.

Stocks to Consider

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

MediWound Ltd. MDWD is set to release quarterly numbers on Aug 14. It has an Earnings ESP of +4.76% and a Zacks Rank #2.

On Holding AG ONON is scheduled to report quarterly numbers on Aug 13. It has an Earnings ESP of +11.51% and sports Zacks Rank of 1.

The Earnings ESP for Dycom Industries DY is +4.43%, and it has a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Aug 21.

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