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Shares of Intuitive Machines, Inc. (LUNR) skyrocketed 52% in Wednesday’s pre-market session, as of 7:25 a.m. ET, after NASA awarded it a Near Space Network (NSN) contract for communication and navigation services for missions in the near space region, extending from Earth’s surface to beyond the Moon.
Intuitive Machines said the contract has a base period of five years with an additional five-year option period and has a maximum potential value of $4.82 billion.
“The incrementally funded base ordering period begins Tuesday, October 1, 2024, through September 30, 2029, with the option period potentially extending the contract through September 30, 2034,” the company said.
The contract will also mark the debut of the firm's lunar satellite constellation which will provide enhanced data and transmission services and autonomous operations.
In August, NASA had awarded the firm a $116.9 million contract to deliver six science and technology payloads, including one European Space Agency-led drill suite to the Moon’s South Pole.
Following the announcement, Intuitive Machines stock became the top trending ticker on Stocktwits on Wednesday morning, with retail sentiment edging-up into the ‘bullish’ territory (56/100) from the ‘neutral’ zone.
Stocktwits users with a bullish view believe the stock holds a good potential in the long term.
One user highlighted the firm’s projections during the earnings.
The company has witnessed a significant improvement in its revenues. For instance, its second quarter revenue of $41.41 million stood higher than the revenues recorded in all of 2023. Intuitive expects full-year 2024 revenue of $210 - $240 million, resulting in 2.6x - 3x prior year sales.
The firm believes that second-quarter ending cash balance is likely to be sufficient to fund operations through the next 12 months.
Before taking into account Wednesday’s pre-market movement, Intuitive Machines stock has recorded gains of over 128% on a year-to-date basis. The stock now faces a key resistance at the $13-mark.