We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Iridium (IRDM) Moves 15.4% Higher: Will This Strength Last?
Read MoreHide Full Article
Iridium Communications (IRDM - Free Report) shares soared 15.4% in the last trading session to close at $46.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% loss over the past four weeks.
IRDM’s rally is largely driven by optimism over speculations that technology giant, Apple, intends to incorporate satellite features in its future iPhones. The satellite functionalities will be focused on emergency situations to make calls beyond the reach of cellular networks, thereby enabling seamless space-based mobile communications. Although rumors are rife that Apple is rooting for Qualcomm’s chip to facilitate low-earth-orbit satellite communications, shares of Iridium gained substantially, given its state-of-the-art satellite capabilities, technology and service coverage. This infused positive sentiments among the investors.
Price and Consensus
This satellite phone company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $155.37 million, up 2.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Iridium, the consensus EPS estimate for the quarter has been revised 48.1% 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.
Image: Bigstock
Iridium (IRDM) Moves 15.4% Higher: Will This Strength Last?
Iridium Communications (IRDM - Free Report) shares soared 15.4% in the last trading session to close at $46.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.8% loss over the past four weeks.
IRDM’s rally is largely driven by optimism over speculations that technology giant, Apple, intends to incorporate satellite features in its future iPhones. The satellite functionalities will be focused on emergency situations to make calls beyond the reach of cellular networks, thereby enabling seamless space-based mobile communications. Although rumors are rife that Apple is rooting for Qualcomm’s chip to facilitate low-earth-orbit satellite communications, shares of Iridium gained substantially, given its state-of-the-art satellite capabilities, technology and service coverage. This infused positive sentiments among the investors.
Price and Consensus
This satellite phone company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +33.3%. Revenues are expected to be $155.37 million, up 2.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Iridium, the consensus EPS estimate for the quarter has been revised 48.1% 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 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>