Ast SpaceMobile, Inc. (ASTS Quick QuoteASTS - Free Report) is set to report its first-quarter 2025 results on May 12, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 14.29%, with the bottom line beating the Zacks Consensus Estimate by 2 cents. The company is expected to report a top-line improvement year over year, backed by healthy momentum in both the government and private sectors.

Factors at Play

During the first quarter, AST SpaceMobile inked an agreement with Ligado Networks to enhance space-based network coverage. The deal will enable ASTS to get access to up to 40 MHz of Ligado’s L-band mobile satellite spectrum in the United States and Canada and an additional 5 MHz in the 1670-1675 MHz band in the United States. This, in turn, will enable ASTS to support up to 10,000 MHz of processing bandwidth per satellite in the future, with data transmission speeds of up to 120 Mbps across a space-based cellular broadband network accessible to everyday smartphones. 

Vodafone Group Plc, a leading European and African telecommunications company, also signed a deal with ASTS to create a jointly-owned European satellite service business to serve mobile network operators (MNOs) in all European markets. The venture, SatCo, aims to deliver 100% geographic coverage via space-based cellular broadband. It will exclusively distribute AST SpaceMobile’s services, supported by a Europe-based operations center and ground station network, ensuring secure connectivity and digital sovereignty for MNOs. These developments are likely to have a favorable impact on the company’s earnings in the to-be-reported quarter. 

In the to-be-reported quarter, AST SpaceMobile was granted Special authorization for testing service in the United States by the Federal Communications Commission (“FCC”). This approval underscores the shared vision between AST SpaceMobile and the FCC, focusing on bridging the digital divide, enhancing emergency communication capabilities, advancing digital transformation, and reinforcing U.S. leadership in the evolving space economy and direct-to-device technologies. This advancement is likely to have boosted ASTS’ commercial prospects in the global satellite communications market significantly.

Overall Expectations

For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $4.33 million, indicating year-over-year growth from $0.50 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)  

The consensus estimate for adjusted earnings per share indicates a loss of 15 cents per share. It incurred a loss of 16 cents per share in the year-ago quarter.

Earnings Whispers

Our proven model predicts an earnings beat for AST SpaceMobile this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +2.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

AST SpaceMobile, Inc. Price and EPS Surprise

AST SpaceMobile, Inc. price-eps-surprise | AST SpaceMobile, Inc. Quote

Zacks Rank: AST SpaceMobile currently has a Zacks Rank #3.

Other Stocks With Favorable Combination

The Earnings ESP for TELUS Corporation (TU Quick QuoteTU - Free Report) is +6.06% and carries a Zacks Rank of 3 currently. The company is scheduled to report quarterly numbers on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Primo Brands Corporation (PRMB Quick QuotePRMB - Free Report) is +6.12% and carries a Zacks Rank of 2 at present. The company is scheduled to report quarterly numbers on May 8.

Fortinet (FTNT Quick QuoteFTNT - Free Report) is set to release quarterly numbers on May 7. It has an Earnings ESP of +3.77% and a Zacks Rank #3 at present.