AST SpaceMobile Stock Is Blasting Off After The Bell: Here’s Why – AST SpaceMobile (NASDAQ:ASTS)

AST SpaceMobile Inc ASTS shares are ripping higher in Wednesday’s after-hours session after the company reported first-quarter financial results and announced a definitive commercial agreement with AT&T Inc T.

What Happened: AST SpaceMobile reported first-quarter sales of $500,000, which missed analyst estimates of $5.5 million, according to data from Benzinga Pro.

The company reported an adjusted loss of 16 cents per share, which beat estimates for a loss of 21 cents per share.

“I am grateful for our global team’s unwavering dedication and hard work as we prepare for the launch of our first five commercial satellites and initial commercial service. We are set up for an exciting summer ahead as we push forward on all fronts of our business,” said Abel Avellan, chairman and CEO of AST SpaceMobile.

The after-hours surge in shares of AST SpaceMobile appears to be in reaction to the company’s new agreement with AT&T.

AST SpaceMobile said it entered into a definitive commercial agreement with AT&T to provide a space-based broadband network direct to everyday cell phones. The two companies were previously working together under a Memorandum of Understanding. The new agreement extends the collaboration until 2030.

“This is not just one small step, but one giant leap towards enhanced connectivity for consumers and businesses across the country,” the company said in a press release.

AST SpaceMobile plans to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit this summer to enable commercial service.

Management will hold a conference call to discuss its quarterly results and new announcements at 5 p.m. ET.

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ASTS Price Action: AST SpaceMobile shares were up 42.7% after hours at $3.40 at the time of writing, according to Benzinga Pro.

Photo: PIRO from Pixabay.