Why Is AST SpaceMobile (ASTS) Down 25.8% Since Last Earnings Report?

It has been about a month since the last earnings report for AST SpaceMobile, Inc. (ASTS). Shares have lost about 25.8% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AST SpaceMobile due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for AST SpaceMobile, Inc. before we dive into how investors and analysts have reacted as of late.ASTS Reports Wider-Than-Expected Q2 Loss Despite Top-Line GrowthAST SpaceMobile reported lackluster second-quarter 2025 results, with both the top and bottom lines missing the Zacks Consensus Estimate.Unfavorable macroeconomic conditions, such as rising inflation, higher interest rates, volatility in the capital markets, imposition of tariffs and geopolitical conflicts, are negatively impacting the company’s operations. These factors led to continued fluctuations in satellite material prices, increasing capital costs and putting pressure on the company’s financial performance in the quarter under discussion.Quarter DetailsNet loss in the reported quarter was $99.4 million or a loss of 41 cents per share compared with a loss of $72.6 million or a loss of 51 cents per share in the year-ago quarter. The reported loss was wider than the Zacks Consensus Estimate of a loss of 19 cents.Quarterly revenues improved to $1.2 million from $0.9 million in the year-ago quarter. However, the top line missed the Zacks Consensus Estimate of $5 million.Other Details    In the June quarter, total operating expenses rose to $73.9 million from $63.9 million in the year-ago quarter. This was due to increased research and development costs and engineering services costs. Adjusted operating expenses for the second quarter were $63.4 million.Cash Flow & LiquidityFor the first six months of 2025, the company utilized $72 million of cash for operating activities compared with $64.3 million in the year-ago period. As of June 30, 2025, it had $923.6 million in cash and cash equivalents with $482.5 million long long-term debt.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.The consensus estimate has shifted 17.07% due to these changes.VGM ScoresAt this time, AST SpaceMobile has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. 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 trending upward for the stock, and the magnitude of these revisions looks promising. Notably, AST SpaceMobile has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAST SpaceMobile belongs to the Zacks Wireless Equipment industry. Another stock from the same industry, Motorola (MSI), has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.Motorola reported revenues of $2.77 billion in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $3.57 for the same period compares with $3.24 a year ago.For the current quarter, Motorola is expected to post earnings of $3.84 per share, indicating a change of +2.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% 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.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AST SpaceMobile, Inc. (ASTS): Free Stock Analysis Report Motorola Solutions, Inc. (MSI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks