By Adam Clark

AST SpaceMobile stock was diving on Friday. Some investors look to be taking profits after the satellite company's strong rally this year and a larger quarterly loss.

The company is building the first global cellular broadband network in space. It has been a hot stock, more than tripling in value this year after announcing partnerships with telecom companies and launching its first five commercial satellites.

Its latest results prompted some shareholders to lock in some gains. AST SpaceMobile booked a net loss of $1.10 a share in the third quarter, wider than the 23-cent loss a year ago. Analysts surveyed by FactSet were looking for a loss of 20 cents a share. AST stock fell 15% to $22.78 in Friday trading.

AST SpaceMobile reported revenue of $1.1 million in the quarter, versus zero revenue in the same period last year. The consensus forecast was for revenue of $1.8 million, according to FactSet.

Separately, the company announced launch-services agreements to send up to 60 satellites into space and provide coverage for key markets such as the U.S., Europe, and Japan. The launch campaign from Cape Canaveral Space Force Station is scheduled for 2025 and 2026. Those agreements are with Elon Musk's SpaceX, as well as Jeff Bezos' rocket company Blue Origin and the Indian Space Research Organization for the launches.

"Taken all together, the launch agreements...and likely others as well in the future, gives us increased confidence that we can achieve our network deployment goals," CEO Abel Avellan said on the earnings call.

"Our [fourth quarter] estimates remain little changed save for what we now model as $101 million of capex in the quarter (vs. prior $30 million estimate) as the company is beginning to take advantage of its fortified balance sheet to accelerate constellation deployment," wrote B. Riley analyst Mike Crawford in a research note.

Crawford kept a Buy rating and $36 target price on AST SpaceMobile stock.

Write to Adam Clark at adam.clark@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

November 15, 2024 11:27 ET (16:27 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.