The reason behind AST SpaceMobile's share price surge on Wednesday.
With just a few days left before earnings day, satellite communications startup AST SpaceMobile's (ASTS 10.16%) shares have seen a 16.7% surge after announcing a significant win. On Wednesday, they bagged a $43 million subcontract under a Space Force award.
Engaging in a tight-lipped approach, the company revealed that it will support the U.S. Space Development Agency (SDA), which falls under the U.S. Space Force, through a prime contractor. The deal aims to accelerate the delivery of essential space-based capabilities to the military.
The contract can be traced back to successful testing conducted on BlueWalker-3 in orbit, announced earlier in 2022. The specifics, however, remain under wraps, with the company failing to disclose the identity of the prime contractor that subcontracted the work to them.
The contract falls under Space Force's Proliferated Warfighter Space Architecture (PWSA) program, but that's as far as AST SpaceMobile is willing to go with revealing details. The list of companies that have won prime contracts under PWSA includes L3Harris, Lockheed Martin, Northrop Grumman, Rocket Lab, RTX, SpaceX, and York Space Systems. While AST SpaceMobile's immediate customer remains a mystery, the company's contract is likely tied to one of these players.
When AST SpaceMobile shares its Q4 earnings after market close on March 3, we may finally have the answer.
Enrichment Data (15%):The SDA, part of the U.S. Space Force, manages the PWSA program. A few companies, such as York Space Systems and Tyvak Nano-Satellite Systems, have played a role in the program's development. However, the full list of companies eligible to bid for all aspects of PWSA is not entirely detailed. AST SpaceMobile's subcontract is related to PWSA, making it likely that the prime contractor is also involved in PWSA or HALO initiatives where companies overlap. Yet, AST SpaceMobile has not disclosed the identity of this prime contractor.
The new contract secured by AST SpaceMobile is worth $43 million and is a subcontract under the Space Force's PWSA program. This win is expected to boost their investments in finance and satellite communications technology. The prime contractor for this project remains undisclosed, although they are likely to be involved in PWSA or related initiatives. With the earnings report approaching, investors are eager to see if this partnership will impact AST SpaceMobile's money flow and future prospects in space-based technologies.
