Why Globalstar (GSAT) Stock Is Slumping Today

NEW YORK (TheStreet) -- Shares of Globalstar Inc. (GSAT) are lower by -4.15% to $3.70 in early afternoon trading on Tuesday, after the company reported a net loss of -$433.7 million, or -48 cents per share for the 2014 second quarter, wider than a net loss of -$126.3 million, or -25 cents per share for the 2013 second quarter.

“Net loss during the second quarter of 2014 reflected the impact of substantial non-cash charges resulting from an increase in the value of the company’s derivative instruments, which was driven primarily by a 60% increase in the Company’s stock price during the second quarter of 2014,” the company said.

Globalstar provides mobile voice and data communications services globally. 

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Although the company reported a net loss, revenue for the most recent quarter increased by 21% to $24 million versus $19.8 million for the year ago period.


Separately, 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 several weaknesses, 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."

You can view the full analysis from the report here: GSAT Ratings Report

GSAT Chart GSAT data by YCharts

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