Globalstar (GSAT) to Boost 5G Infrastructure With Strategic Tie-Up

Globalstar GSAT recently joined forces with Liquid Intelligent Technologies, a subsidiary of Cassava Technologies, to deliver reliable and high-speed 5G connectivity across Africa, the Middle East and the Gulf, particularly in sectors like mining and high-end enterprise markets.

As part of Cassava Technologies’ business, Liquid Intelligent Technologies is known for providing digital infrastructure across Africa, with a 110,000 km-long fiber broadband network and satellite connectivity that ensures high-speed Internet across the country.

Per the agreement, Liquid Intelligent Technologies will have exclusive rights to sell and distribute Globalstar’s XCOM RAN private networks 5G access solution in the Gulf, Middle East and Africa. This premium technology is designed to augment the 5G experience and support AI-driven applications. 

GSAT highlighted the difference between its XCOM RAN product and traditional wireless solutions, as XCOM RAN is specifically designed to support mission-critical, high-performance wireless applications. This technology, when combined with Globalstar’s licensed n53 mid-band spectrum, creates a powerful solution for private and enterprise 5G networks.

Apart from mining, XCOM RAN offers potential capacity gains in dense wireless environments, making it an ideal solution for warehouse automation, distribution centers, stadiums and campuses.

Globalstar, Inc. Price and Consensus

Globalstar, Inc. price-consensus-chart | Globalstar, Inc. Quote

Globalstar offers satellite voice and data services to commercial and recreational users in more than 120 countries worldwide. Its products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Recently, it secured a 15-year extension of its senior HIBLEO-4 authorization from the U.S. Federal Communications Commission, allowing it to operate up to 26 replacement satellites.

In the last reported quarter, GSAT’s revenues rose 10% year over year to $60.4 million, driven by higher service revenues amid a soft demand in the subscriber equipment business. The top line beat the Zacks Consensus Estimate by 5%. The company has updated the lower end of its full-year 2024 revenue guidance. It now expects net sales between $235 million and $250 million, raised from the prior view of $225-$250 million.

GSAT currently carries a Zacks Rank #3 (Hold). GSAT’s shares have gained 36.8% against the industry’s decline of 31.1%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Arista Networks, Inc. ANET, Harmonic Inc. HLIT and CommScope Holding Company, Inc. COMM. ANET and HLIT presently sport a Zacks Rank #1 (Strong Buy) each, whereas COMM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, Arista delivered an earnings surprise of 8.25%.

Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.

CommScope Holding is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. COMM has a long-term growth expectation of 18.15%.

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