Globalstar, Inc. (NASDAQ:GSAT) shares are trading higher by 16.3% at $1.12 Thursday afternoon after the company announced it signed a contract with MDA for new satellites. The company reports fourth-quarter earnings after the close today.
Globalstar says the total contract price for the initial 17 satellites is $327 million. Globalstar maintains the option to acquire up to nine additional satellites with flexibility in timing to place such orders in addition to other optional services under the contract. Globalstar says if the company elects to acquire new satellites, each satellite will be priced at $11.4 million, subject to certain price adjustments.
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According to analyst consensus estimates, Globalstar is expected to report a fourth-quarter EPS loss of 1 cent on $28.65 million of revenue during Thursday's after-hours session.
Globalstar has a 52-week high of $2.78 and a 52-week low of $0.82.
