Intuitive Machines shares surge as space contracts fuel quarterly revenue

By Kritika Lamba

March 24 (Reuters) - Intuitive Machines' LUNR.O shares surged 20% on Monday after the space company posted a 79% jump in its fourth-quarter revenue on the back of higher contracts.

The company secured additional contracts for direct-to-earth services that position it to capitalize on the contract's $4.8 billion maximum potential value.

Intuitive Machines' direct-to-earth services offer communication and navigation for spacecraft like lunar landers and orbiters, linking them to Earth's ground stations to support NASA's Artemis program and sustainable lunar exploration.

Shares of Intuitive Machines have fallen 61% this year largely due to issues with its second moon landing.

Earlier this month, Athena landed on its side after problems with its laser rangefinders, mirroring the same issue as its first moon lander.

"While the landing of the IM 2 mission is unfortunate, we remind investors that it is not as material as the market may think. LUNR's primary source of revenue is not from its launch missions, but rather from its space contracts," said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.

The company posted fourth-quarter revenue of $54.6 million, compared with $30.7 million a year earlier.

The Houston, Texas-based company also confirmed that its third moon lander mission, IM-3, remains on track for launch in about a year.