Why BlackSky Stock Rocketed Higher Today
Shares of real-time geospatial intelligence (i.e., spy satellites) company BlackSky Technology (NYSE: BKSY) surged ahead 6.7% through 10:20 a.m. ET Monday morning after the company -- which did less than $70 million in business over the past year -- announced a $30 million contract with an unidentified "international defense sector customer."
Before investors get too excited, though, a couple of things are worth pointing out about this contract. First, despite 70 plus 30 equaling 100, this contract for the provision of "on-demand, real-time, high-frequency imagery services" is not going to push BlackSky over $100 million in annual revenues, and for two reasons.
One, it's a multiyear contract, meaning the $30 million will be spread over at least two years (so at most, the increase in sales would be $15 million per year).
Source Fool.com
