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Iridium (IRDM) Surges 9.4%: Is This an Indication of Further Gains?
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Iridium Communications (IRDM - Free Report) shares ended the last trading session 9.4% higher at $41.91. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 23.1% loss over the past four weeks.
IRDM’s rally is largely driven by optimism over cost-effective and competitive broadband services through its highly-lauded Iridium Certus technology. Being the sole provider of mobile voice and data satellite communications network, the company is benefiting from a highly lucrative recurring service revenue base driven by a steady subscriber growth and mobile penetration backed by an efficient operating model. The company’s mobile and satellite communication network leverages the advanced interlinked mesh architecture of 66 operational satellites to provide extensive global reach.
Price and Consensus
This satellite phone company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $146.81 million, up 1.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Iridium, the consensus EPS estimate for the quarter has been revised 11.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IRDM going forward to see if this recent jump can turn into more strength down the road.
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Iridium (IRDM) Surges 9.4%: Is This an Indication of Further Gains?
Iridium Communications (IRDM - Free Report) shares ended the last trading session 9.4% higher at $41.91. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 23.1% loss over the past four weeks.
IRDM’s rally is largely driven by optimism over cost-effective and competitive broadband services through its highly-lauded Iridium Certus technology. Being the sole provider of mobile voice and data satellite communications network, the company is benefiting from a highly lucrative recurring service revenue base driven by a steady subscriber growth and mobile penetration backed by an efficient operating model. The company’s mobile and satellite communication network leverages the advanced interlinked mesh architecture of 66 operational satellites to provide extensive global reach.
Price and Consensus
This satellite phone company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $146.81 million, up 1.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Iridium, the consensus EPS estimate for the quarter has been revised 11.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IRDM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>