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SpaceX Rival Secures Key Contract, But Posts Big Earnings Miss

AST SpaceMobile, a SpaceX rival and partner, posted a major miss for its quarterly results late Thursday. However, the company was able to secure a key contract, which should help expand its space-based telecommunications network. Another rival, Rocket Lab (RKLB), has soared nearly 30% this week as analysts hiked price targets following its Q3 beat late Tuesday.

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AST SpaceMobile (ASTS) reported a loss of $1.10 per share, widening from a loss of 23 cents per share last year. Revenue came in at $1.1 million.

FactSet expected a loss of 20 cents per share on $1.8 million in revenue.

The company also announced it reached new launch service agreements, which it says will enable continuous space-based cellular broadband coverage across key global markets. AST SpaceMobile's global service will initially target the U.S., Europe and Japan, as well as services for the U.S. government and other key markets.

The next block of about 60 satellites will launch into low orbit from the Cape Canaveral Florida Space Force Station in 2025 and 2026. AST SpaceMobile plans to utilize existing launch vehicles and Blue Origin's New Glenn rocket for the launches.

AST SpaceMobile is building a space-based cellular broadband network, differentiated by its ability to enable everyday smartphones to connect to orbiting satellites. The company's goal is to provide connectivity worldwide at 4G/5G speeds for both government and commercial applications. The company on Sept. 12 successfully launched its first five commercial BlueBird satellites with its partner SpaceX, which unfolded and completed deployment at the end of October. AST SpaceMobile could eventually include 168 satellites in its constellation, according to reports.

AST's satellites have some overlap and competition with SpaceX subsidiary Starlink.