Globalstar (GSAT) Moves 10.3% Higher: Will This Strength Last?

Globalstar (GSAT) shares soared 10.3% in the last trading session to close at $67.38. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.8% loss over the past four weeks.

The increase in share price can be attributed to speculation about a SpaceX IPO, as highlighted by Bloomberg, which tends to move the entire space/satellite sector. This has bolstered investor interest in the entire space economy, benefiting satellite stocks like Globalstar. The satellite industry is transforming due to technological advances and rising global connectivity demand. LEO constellations like Starlink and OneWeb are expanding broadband access, while AI, machine learning and big data are increasing satellite use across multiple industries.

GSAT operates a LEO satellite constellation providing mobile satellite services (MSS) and voice/data communications to retail, enterprise and government customers. Its terrestrial assets include Band 53 spectrum, the 5G n53 variant and XCOM RAN.

Globalstar reported 2025 revenue of $273 million, up 9% year over year, with a lower net loss and a strong 50% Adjusted EBITDA margin, in line with guidance. Management called 2025 a transformational year, highlighting progress in satellite infrastructure, product innovation, and commercial adoption across government and enterprise markets. The company is preparing to launch replacement and next-generation satellites, expand network infrastructure, roll out two-way IoT services, and grow its XCOM RAN business, positioning 2026 as a growth phase.

This satellite communications company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $70.64 million, up 17.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Globalstar, the consensus EPS estimate for the quarter has been revised 250% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GSAT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Globalstar belongs to the Zacks Satellite and Communication industry. Another stock from the same industry, Gilat Satellite (GILT), closed the last trading session 3.5% higher at $17.39. Over the past month, GILT has returned 8.3%.

Gilat's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.06. Compared to the company's year-ago EPS, this represents a change of -300%. Gilat currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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