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Iridium (IRDM) Ups the Ante With Iridium Certus 100 Service Launch

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Iridium Communications Inc. (IRDM - Free Report) recently hit a significant milestone in the field of satellite communications with the launch of the avant-garde Iridium Certus 100 "midband" service. The offering is commercially accessible for government customers, land mobile, and maritime. The company also unveiled the SkyLink by Blue Sky Network and LT-4100 by Lars Thrane products. These are some of the first few Iridium Connected midband partner products as part of this much-awaited move.

Iridium Certus 100 has been specifically designed to offer reliable global connectivity for vessels, vehicles, and aircraft. Equipped with robust capabilities, the solution meets the size and performance requirements that make it ideal for mobile and portable operations such as real-time asset control and workforce communications. The newly launched products are weather-resilient and provide IP data speeds up to 88 Kbps for better connectivity.

These products have been designed to address the growing market demand for new satellite communications solutions that are compact, battery or line-powered mobile equipment, capable of providing high-quality voice services and two-way IP data. SkyLink by Blue Sky Network is a dual-mode data management solution for IoT, land, sea, and air applications that delivers next-gen satellite connectivity, irrespective of the location.

Iridium’s shares have returned 35.3% compared with the industry’s growth of 37.8% in the past year.

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With an augmented coverage, SkyLink offers business efficiency. The adaptive solution is ideal for mid-sized vessels, government and military aviation, and remote monitoring stations. The LT-4100 by Lars Thrane is a maritime satellite communication product that leverages Iridium Certus 100 services. This single antenna cable solution involves hassle-free installation and can function even in rugged environments with temperatures ranging from -40 to +55°C.

With an exceptional performance, it is mainly designed for professional mariners associated with workboats and deep-sea fishing. Iridium Certus 100 is also compatible with its partner-built data compression technologies. The innovative technology enables it to support low-resolution video transmission for monitoring applications. Apart from SkyLink and LT-4100, other products that will soon be commercially available in the market include RockREMOTE from Ground Control, McQ CONNECT, Flylogix UAV system, and the NAL Research Quicksilver (QS-100).

Supported by an efficient operating model, Iridium expects to continue benefiting from a highly lucrative recurring service revenue base driven by subscriber growth and mobile penetration. This Zacks Rank #3 (Hold) company believes in the philosophy of delivering cost-effective and competitive broadband services through its Iridium Certus technology. Its commercial business is the main source of long-term growth as it serves a diversified customer base in various regions. Further, the company’s strong product portfolio is expected to boost the top line in the long run.

Some better-ranked stocks in the broader industry are The Liberty SiriusXM Group (LSXMK - Free Report) , Harmonic Inc. (HLIT - Free Report) , and Arista Networks, Inc. (ANET - Free Report) . While Liberty SiriusXM and Harmonic sport a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Liberty SiriusXM delivered a trailing four-quarter earnings surprise of 58.9%, on average. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from 16 cents per share to 62 cents in that period.

Liberty SiriusXM reported strong third-quarter 2021 results wherein the bottom line beat the Zacks Consensus Estimate by 48 cents. Its quarterly revenues totaled $2.2 billion, which reflects a 9% increase from the prior-year period. For the current year, Liberty SiriusXM’s earnings have been revised upward from $1.05 to $1.97 in the past 60 days and for the next year, it has moved upward from $3.03 to $3.22. Its shares have surged 36.6% compared with the industry’s growth of 37.8% in the past year.

Harmonic delivered a trailing four-quarter earnings surprise of 61.1%, on average. Over the last 60 days, one analyst has increased the earnings estimate for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from 13 cents per share to 14 cents in that period. It has a long-term earnings growth expectation of 15%.

Harmonic reported impressive third-quarter 2021 results, wherein both the bottom line and the top line surpassed their respective Zacks Consensus Estimate. Its quarterly revenues totaled $126.3 million, which reflects a 33% increase from the prior-year period. Backed by continued execution of strategic growth initiatives, the company witnessed a healthy momentum in Cable Access and Video segments and a robust cash position with a solid backlog. Its shares have gained 71.7% compared with the industry’s growth of 28.1% in the past year.

Arista Networks delivered a trailing four-quarter earnings surprise of 6%, on average. Over the last 60 days, eight analysts have increased the earnings estimates for the current quarter while none have lowered the same. The net effect has taken the Zacks Consensus Estimate for the current quarter from $2.78 per share to $2.95 in that period. It has a long-term earnings growth expectation of 16.7%.

Arista Networks reported strong third-quarter 2021 results, wherein both the bottom and the top lines hit record highs and beat the respective Zacks Consensus Estimate, driven by solid demand trends. Adjusted earnings and revenues also improved significantly year over year. Quarterly total revenues jumped 23.7% year over year to $748.7 million and were well ahead of the company’s guidance of $725-$745 million. The rise was primarily led by solid customer additions and growth in the enterprise vertical. Its shares have rallied 95.5% compared with the industry’s growth of 28.1% in the past year.