NextNav (NASDAQ:NN) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

NextNav (NASDAQ:NN) posted its earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.08, FiscalAI reports. The firm had revenue of $1.58 million for the quarter, compared to analyst estimates of $0.99 million. NextNav had a negative return on equity of 211.25% and a negative net margin of 3,232.19%.

Here are the key takeaways from NextNav’s conference call:

• The FCC’s draft PNT-focused NPRM is undergoing interagency review, and NextNav said it is engaging with government agencies and stakeholders. The company emphasized bipartisan support but gave no timing for the review or final action.
• NextNav reported single-digit-meter positioning accuracy in indoor and outdoor field tests on a live 5G network in Santa Clara County, with no reported interference during testing.
• The company is building partnerships for positioning, timing, and drone sensing, and said its work with Tiami and AiRANACULUS could support wide-area sensing on standardized 5G networks; these capabilities remain in development and NextNav said they would work best under updated 5G rules.
• NextNav ended the quarter with approximately $290 million in cash, equivalents, and investments, and said it is debt-free. It reported a $4.2 million net loss, partially offset by a $13 million non-cash gain from changes in warrant value.

NextNav Trading Up 6.5%

Shares of NextNav stock traded up $0.55 during trading hours on Wednesday, reaching $8.95. 904,059 shares of the company’s stock were exchanged, compared to its average volume of 2,422,630. NextNav has a 52-week low of $7.60 and a 52-week high of $24.42. The firm has a market capitalization of $1.51 billion, a price-to-earnings ratio of -9.24 and a beta of 1.20. The company has a fifty day moving average of $12.56 and a 200-day moving average of $16.18.

Analysts Set New Price Targets

NN has been the topic of several recent research reports. Odeon Capital Group started coverage on NextNav in a research report on Monday, July 20th. They issued a “buy” rating and a $22.00 price objective on the stock. Wells Fargo & Company reiterated a “buy” rating on shares of NextNav in a research report on Monday, September 21st. Zacks Research downgraded shares of NextNav from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 20th. Clear Str upgraded shares of NextNav to a “strong-buy” rating in a report on Monday, September 21st. Finally, Wall Street Zen cut shares of NextNav from a “hold” rating to a “sell” rating in a research note on Sunday, September 27th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, NextNav presently has an average rating of “Moderate Buy” and an average target price of $32.33.

NextNav News Summary

Investors following NN have been watching these news items:

• Positive Sentiment: NextNav’s quarterly loss was narrower than analysts expected, while revenue of $1.58 million topped the roughly $0.99 million consensus estimate. NextNav Q3 results and operational highlights
• Positive Sentiment: NextNav reported single-digit-meter positioning performance in Santa Clara, offering a concrete demonstration of its technology’s capabilities. NextNav highlights positioning and liquidity
• Negative Sentiment: Despite beating estimates, NextNav continues to post losses, and its quarterly revenue remains small—leaving execution and future growth important to the investment case. NextNav third-quarter and nine-month results

Insider Transactions at NextNav

In related news, CEO Mariam Sorond sold 2,831 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $14.72, for a total value of $41,672.32. Following the completion of the transaction, the chief executive officer directly owned 1,168,961 shares in the company, valued at approximately $17,207,105.92. This represents a 0.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Timothy Gray sold 11,099 shares of the stock in a transaction dated Wednesday, September 23rd. The stock was sold at an average price of $14.64, for a total value of $162,489.36. Following the transaction, the chief financial officer owned 120,687 shares in the company, valued at $1,766,857.68. This trade represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 87,667 shares of company stock worth $1,331,153 over the last quarter. 7.80% of the stock is currently owned by insiders.

About NextNav

NextNav, Inc. develops positioning, navigation and timing technologies designed to complement and help provide alternatives to satellite-based GPS. Its services support location-aware applications in environments where GPS signals may be limited, including indoors and in urban areas. The company’s offerings include Pinnacle, a service that provides vertical location information, such as a device’s floor or height within a building, and TerraPoiNT, a terrestrial network designed to deliver positioning and timing signals.