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What to Expect Ahead of Iridium (IRDM) Q1 Earnings Release?

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Iridium Communications (IRDM - Free Report) is slated to release first-quarter 2022 results on Apr 19, before market open. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 1 cent per share on revenues of $156.3 million.

This U.S.-based satellite communications company posted solid results in the last reported quarter, with the bottom line matching the Zacks Consensus Estimate. Quarterly revenues amounted to $155.9 million, increasing 6.4% from the year-ago quarter’s levels. The upside can be attributed to strength in subscriber equipment sales and higher service revenues. The top line surpassed the consensus mark by 2.3%.

Over the trailing four quarters, the company surpassed estimates on three occasions and met the same once, the average surprise being 39.4%.

Iridium Communications Inc Price and EPS Surprise

 

Iridium Communications Inc Price and EPS Surprise

Iridium Communications Inc price-eps-surprise | Iridium Communications Inc Quote

 

Trends in Estimate Revisions

The Zacks Consensus Estimate for Iridium’s first-quarter loss per share has remained unchanged in the past 30 days. It compares favorably with the year-ago quarter’s loss of 4 cents per share. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 6.7%.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Iridium for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as elaborated below.

Earnings ESP: Iridium has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Iridium carries a Zacks Rank of 2 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

Iridium’s cost-effective broadband services, provided through the Certus technology, position it well for growth. The company is likely to have gained from the increasing penetration of its new line-up of mid-band services. The company’s recurring service revenue base, driven by robust subscriber growth and mobile penetration, lends it a competitive edge and is anticipated to have driven its first-quarter performance.

During the quarter under review, Iridium’s Certus Service announced an ultra-low bandwidth video transmission technology solution — FireLight — that is capable of live video transmission from as low as 4 Kbps. This cost-effective and weather-resistant solution is capable of video transmission to and from any location in the world.

Continued momentum in commercial IoT business (particularly personal satellite communications) and broadband business is likely to have acted as a tailwind. In the last reported quarter, the company had a 13K strong subscriber base for broadband services.

The Zacks Consensus Estimate for its quarterly revenues from the service segment (which accounts for a significant chunk of its total revenues) is pinned at $125 million, indicating a rise of 7.8% from the prior-year quarter’s levels.

However, the Zacks Consensus Estimate for quarterly revenues from the Subscriber Equipment segment is pinned at $23.13 million, indicating a decline of 3.4% year over year. The consensus mark for revenues from the Engineering and Support Service segment is pegged at $7.92 million, up 23.2.% from the prior-year quarter’s levels.

Continued supply-chain disruptions due to the pandemic are likely to have acted as a headwind for Iridium’s first-quarter revenues. Further, surging operating expenses and increased lead time to obtain spectrum licenses are likely to have dented the company’s margins to some extent.

Stocks With Favorable Combination

Here are some stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:

Nokia (NOK - Free Report) has an Earnings ESP of +28.57% and currently carries a Zacks Rank of 2. Nokia is set to announce quarterly figures on Apr 28.

The Zacks Consensus Estimate for Nokia’s to-be-reported quarter’s earnings and revenues is pegged at 7 cents per share and $5.92 billion, respectively. Nokia surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 205.2%. Shares of NOK have gained 22.5% in the past year.

Nielsen (NLSN - Free Report) has an Earnings ESP of +5.60% and carries a Zacks Rank #1 at present. Nielsen is scheduled to report earnings results on Apr 28.

The Zacks Consensus Estimate for Nielsen’s to-be-reported quarter’s earnings and revenues is pegged at 42 cents per share and $876 million, respectively. Nielsen surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 28.2%. Shares of NLSN have gained 8.2% in the past year.

Apple (AAPL - Free Report) has an Earnings ESP of +1.78% and currently carries a Zacks Rank #2. Apple is slated to release quarterly numbers on Apr 28.

The Zacks Consensus Estimate for Apple’s to-be-reported quarter’s earnings and revenues is pegged at $1.43 per share and $94.43 billion, respectively. AAPL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 20.3%. Shares of AAPL have gained 22.5% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.