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Factors to Note Ahead of Iridium (IRDM) Q2 Earnings Release
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Iridium Communications (IRDM - Free Report) is slated to release second-quarter 2022 results on Jul 26, before market open. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at breakeven, unchanged in the past 30 days. In the year-ago quarter, the company had reported earnings of 3 cents per share.
The consensus estimate for revenues is pegged at $164.1 million, suggesting year-over-year growth of 9.5%.
This U.S.-based satellite communications company posted solid results in the last reported quarter. The company delivered earnings of 2 cents per share, beating the Zacks Consensus Estimate of a loss of 1 cent. The company reported a loss of 4 cents in the prior-year quarter. Quarterly revenues of $168.2 million, increasing 15% 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 7.6%.
Over the trailing four quarters, the company surpassed estimates on all occasions, with the average surprise being 109.4%.
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.
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 second-quarter performance. As of Mar 31, 2022, the company had 1,781,000 billable subscribers, up 17% compared with 1,518,000 at the end of the prior-year quarter.
During the quarter under review, Iridium’s announced that Iridium and General Dynamics Corporation had been awarded a contract worth $324.5 million by the Space Development Agency (SDA). The contract involves the development of the ground Operations and Integration segment for Tranche 1 of the National Defense Space Architecture.
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’s commercial IoT activations totaled 50K.
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 $131 million, indicating a rise of 8.3% from the prior-year quarter’s levels.
The consensus mark for quarterly revenues from the Subscriber Equipment segment is pinned at $25.75 million, indicating an increase of 18.3% year over year. The consensus mark for revenues from the Engineering and Support Service segment is pegged at $7.66 million, up 12% from the prior-year quarter’s levels.
Protracted supply-chain disruptions due to the pandemic are likely to have acted as a headwind for Iridium’s second-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 you may consider as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for FCF’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $98 million, respectively. FCF surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 7.1%. Shares of FCF have lost 6.8% in the past year.
Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +1.15% and currently has a Zacks Rank #2. Schlumberger is scheduled to report earnings results on Jul 22.
The Zacks Consensus Estimate for Schlumberger’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $6.28 billion, respectively. Schlumberger surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 6.7%. Shares of SLB have gained 22% in the past year.
NextEra Energy Partners, LP (NEP - Free Report) has an Earnings ESP of +49.01% and currently carries a Zacks Rank of 2. NextEra Energy Partners is set to announce quarterly figures on Jul 22.
The Zacks Consensus Estimate for NextEra Energy’s to-be-reported quarter’s earnings and revenues is pegged at 30 cents per share and $398.3 million, respectively. Shares of NEP have lost 2.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Iridium (IRDM) Q2 Earnings Release
Iridium Communications (IRDM - Free Report) is slated to release second-quarter 2022 results on Jul 26, before market open. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at breakeven, unchanged in the past 30 days. In the year-ago quarter, the company had reported earnings of 3 cents per share.
The consensus estimate for revenues is pegged at $164.1 million, suggesting year-over-year growth of 9.5%.
This U.S.-based satellite communications company posted solid results in the last reported quarter. The company delivered earnings of 2 cents per share, beating the Zacks Consensus Estimate of a loss of 1 cent. The company reported a loss of 4 cents in the prior-year quarter. Quarterly revenues of $168.2 million, increasing 15% 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 7.6%.
Over the trailing four quarters, the company surpassed estimates on all occasions, with the average surprise being 109.4%.
Iridium Communications Inc Price and EPS Surprise
Iridium Communications Inc price-eps-surprise | Iridium Communications Inc Quote
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.
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 second-quarter performance. As of Mar 31, 2022, the company had 1,781,000 billable subscribers, up 17% compared with 1,518,000 at the end of the prior-year quarter.
During the quarter under review, Iridium’s announced that Iridium and General Dynamics Corporation had been awarded a contract worth $324.5 million by the Space Development Agency (SDA). The contract involves the development of the ground Operations and Integration segment for Tranche 1 of the National Defense Space Architecture.
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’s commercial IoT activations totaled 50K.
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 $131 million, indicating a rise of 8.3% from the prior-year quarter’s levels.
The consensus mark for quarterly revenues from the Subscriber Equipment segment is pinned at $25.75 million, indicating an increase of 18.3% year over year. The consensus mark for revenues from the Engineering and Support Service segment is pegged at $7.66 million, up 12% from the prior-year quarter’s levels.
Protracted supply-chain disruptions due to the pandemic are likely to have acted as a headwind for Iridium’s second-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 you may consider as our model shows that these have the right combination of elements to beat earnings this season.
First Commonwealth Financial Corporation (FCF - Free Report) has an Earnings ESP of +3.66% and currently carries a Zacks Rank #2. FCF is slated to release quarterly numbers on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FCF’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $98 million, respectively. FCF surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 7.1%. Shares of FCF have lost 6.8% in the past year.
Schlumberger Limited (SLB - Free Report) has an Earnings ESP of +1.15% and currently has a Zacks Rank #2. Schlumberger is scheduled to report earnings results on Jul 22.
The Zacks Consensus Estimate for Schlumberger’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $6.28 billion, respectively. Schlumberger surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 6.7%. Shares of SLB have gained 22% in the past year.
NextEra Energy Partners, LP (NEP - Free Report) has an Earnings ESP of +49.01% and currently carries a Zacks Rank of 2. NextEra Energy Partners is set to announce quarterly figures on Jul 22.
The Zacks Consensus Estimate for NextEra Energy’s to-be-reported quarter’s earnings and revenues is pegged at 30 cents per share and $398.3 million, respectively. Shares of NEP have lost 2.6% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.