NEW YORK (TheStreet) -- Globalstar (GSAT - Get Report) shares are climbing, up 2.7% to $4.20, on Monday following the unveiling of the company's newest voice and data solution Sat-Fi.
The global mobile voice and data communications service provider's newest innovation allows customers to use their current smartphones, tablets and laptops to send and receive communications without a cellular connection, through Wi-Fi.
"Sat-Fi technology will allow government users and subscribers including oil & gas, marine, natural resource and emergency response to use their own device to stay connected when cellular coverage is not available," said CEO Jay Monroe.
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TheStreet Ratings team rates GLOBALSTAR INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLOBALSTAR INC (GSAT) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Diversified Telecommunication Services industry. The net income has significantly decreased by 899.0% when compared to the same quarter one year ago, falling from -$25.08 million to -$250.54 million.
- GLOBALSTAR INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, GLOBALSTAR INC reported poor results of -$0.96 versus -$0.29 in the prior year. This year, the market expects an improvement in earnings (-$0.38 versus -$0.96).
- 49.68% is the gross profit margin for GLOBALSTAR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1220.00% is in-line with the industry average.
- Net operating cash flow has significantly increased by 812.75% to $3.80 million when compared to the same quarter last year. In addition, GLOBALSTAR INC has also vastly surpassed the industry average cash flow growth rate of 1.57%.
- Compared to its closing price of one year ago, GSAT's share price has jumped by 572.88%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in GSAT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full analysis from the report here: GSAT Ratings Report