AST SpaceMobile (ASTS) Up 21.6% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for AST SpaceMobile, Inc. (ASTS). Shares have added about 21.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is AST SpaceMobile due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.ASTS Reports Wider-Than-Expected Q1 Loss Despite Revenue ExpansionAST SpaceMobile reported lackluster first-quarter 2026 results, with both top and bottom lines missing the Zacks Consensus Estimate.The company reported revenue growth year over year, driven by gateway hardware sales and U.S. government contract revenues. The company also expanded satellite production and partnerships while advancing BlueBird satellite launches. However, higher operating and launch costs, along with macroeconomic uncertainty, continued to pressure its bottom line. Quarter DetailsNet loss in the reported quarter was $191 million or a loss of 66 cents per share compared with a loss of $45.7 million or a loss of 20 cents per share in the year-ago quarter. The reported loss was wider than the Zacks Consensus Estimate of a loss of 23 cents.Quarterly revenues surged to $14.7 million from $0.72 million in the year-ago quarter, primarily driven by commercial gateway equipment sales and project-related revenue from U.S. government contracts. However, the top line missed the Zacks Consensus Estimate of $38.2 million.In the first quarter, Product revenues increased to $13.4 million from $0.38 million, and Services revenues increased to $1.3 million from $0.34 million in the prior-year quarter.Other DetailsIn the March quarter, total operating expenses rose to $164.1 million from $63.7 million in the year-ago quarter. This was due to increased general and administrative costs and engineering services expenses. Adjusted operating expenses for the first quarter were $91.2 million.Cash Flow & LiquidityIn the first quarter, the company utilized $48.1 million of cash for operating activities compared with a cash utilization of $28.5 million in the year-ago period. As of March 31, 2026, it had $3.03 billion in cash and cash equivalents with $2.96 billion in long-term debt.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.The consensus estimate has shifted -31.62% due to these changes.VGM ScoresAt this time, AST SpaceMobile has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise AST SpaceMobile has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerAST SpaceMobile is part of the Zacks Wireless Equipment industry. Over the past month, Motorola (MSI), a stock from the same industry, has gained 5.8%. The company reported its results for the quarter ended March 2026 more than a month ago.Motorola reported revenues of $2.71 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $3.37 for the same period compares with $3.18 a year ago.For the current quarter, Motorola is expected to post earnings of $3.86 per share, indicating a change of +8.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.Motorola has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks