NextNav (NASDAQ:NN) Announces Quarterly Earnings Results

NextNav (NASDAQ:NN) announced its earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.08, FiscalAI reports. NextNav had a negative return on equity of 129.25% and a negative net margin of 2,451.65%. The business had revenue of $1.58 million for the quarter, compared to analysts’ expectations of $0.99 million.

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 0.6%

NASDAQ NN opened at $8.45 on Thursday. The firm’s fifty day simple moving average is $12.42 and its two-hundred day simple moving average is $16.14. NextNav has a 12-month low of $7.60 and a 12-month high of $24.42. The firm has a market capitalization of $1.43 billion, a P/E ratio of -9.49 and a beta of 1.20.

Insider Transactions at NextNav

In other news, General Counsel James Black sold 1,878 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $15.34, for a total transaction of $28,808.52. Following the completion of the sale, the general counsel owned 89,810 shares in the company, valued at approximately $1,377,685.40. This represents a 2.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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 firm’s stock in a transaction on Wednesday, September 23rd. The stock was sold at an average price of $14.64, for a total value of $162,489.36. Following the completion of the sale, the chief financial officer directly owned 120,687 shares of the company’s stock, valued at $1,766,857.68. The trade was a 8.42% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 87,667 shares of company stock valued at $1,331,153. Corporate insiders own 7.80% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the company. Wells Fargo & Company restated a “buy” rating on shares of NextNav in a research note on Monday, September 21st. Clear Str upgraded NextNav to a “strong-buy” rating in a research note on Monday, September 21st. Wall Street Zen lowered NextNav from a “hold” rating to a “sell” rating in a research note on Sunday, September 27th. Odeon Capital Group began coverage on shares of NextNav in a report on Monday, July 20th. They issued a “buy” rating and a $22.00 target price for the company. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of NextNav in a research report on Thursday, October 15th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, NextNav has an average rating of “Moderate Buy” and a consensus target price of $32.33.

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.