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Factors to Note Ahead of Iridium (IRDM) Q3 Earnings Release
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Iridium Communications (IRDM - Free Report) is slated to release third-quarter 2022 results on Oct 20, before market open.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 2 cents, unchanged in the past 30 days. In the year-ago quarter, the company had reported loss of 2 cents per share.
The consensus estimate for revenues is pegged at $180.8 million, suggesting year-over-year growth of 11.5%.
This U.S.-based satellite communications company posted solid results in the last reported quarter. Iridium reported second-quarter 2022 earnings of 4 cents per share, ahead of the Zacks Consensus Estimate of breakeven earnings. The company had delivered earnings of 3 cents in the prior-year quarter. Quarterly revenues of $174.9 million increased 17% from the year-ago quarter’s levels and surpassed the consensus mark by 6.6%.
Over the trailing four quarters, the company has an average surprise of 100%.
Iridium is likely to have benefited from momentum in that equipment and services business that has been boosting hardware sales. The company’s cost-effective broadband services, provided through Certus technology, position it well for growth. The company is likely to have gained from the increasing penetration of its new lineup of services, especially L-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 Jun 30, 2022, the company had 1,875,000 billable subscribers, up 16% compared with 1,616,000 at the end of the prior-year quarter.
Continued momentum in the 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 subscribers grew 22% year over year.
The Zacks Consensus Estimate for its quarterly revenues from the service segment (which accounts for a significant chunk of its total revenues) is pegged at $137 million, indicating a rise of 7% from the year-ago quarter’s levels.
The consensus mark for quarterly revenues from the Subscriber Equipment segment stands at $31.69 million, indicating an increase of 17.8% year over year. The consensus mark for revenues from the Engineering and Support Service segment is pegged at $11.1 million, up 48.2% from the prior-year quarter’s levels.
Continued supply-chain disruptions are likely to have acted as a headwind for Iridium’s third-quarter revenues. Further, surging operating expenses and increased lead time to obtain spectrum licenses are likely to have weighed on the company’s margins to some extent.
Recent Development
During the quarter under review, Iridium announced that it is working with SpaceX to launch up to five of its remaining additional ground satellites of the Iridium Next Program through SpaceX’s Falcon 9 rocket. The launch, dubbed as Iridium-9, is scheduled in mid-2023 from Vandenberg Space Force Base. Currently, Iridium has 66 operational satellites and nine on-orbit spares. It has six additional satellites on the ground, five of which will be part of the Iridium-9 launch.
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 1 currently.
Stocks With the Favorable Combination
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
The Zacks Consensus Estimate for TSCO’s to-be-reported quarter’s earnings and revenues is pegged at $2.08 per share and $3.28 billion, respectively. TSCO surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 10.2%. Shares of TSCO have lost 2.9% in the past year.
Lockheed Martin (LMT - Free Report) has an Earnings ESP of +1.41% and currently has a Zacks Rank #3. Lockheed Martin is scheduled to report earnings results on Oct 18.
The Zacks Consensus Estimate for Lockheed Martin’s to-be-reported quarter’s earnings and revenues is pegged at $6.60 per share and $16.82 billion, respectively. Lockheed Martin surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 64.5%. Shares of LMT have gained 6.6% in the past year.
AT&T (T - Free Report) has an Earnings ESP of +2.70% and currently carries a Zacks Rank of 3. AT&T is set to announce quarterly figures on Oct 20.
The Zacks Consensus Estimate for AT&T’s to-be-reported quarter’s earnings and revenues is pegged at 61 cents per share and $29.82 billion, respectively. Shares of AT&T have lost 40.8% 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) Q3 Earnings Release
Iridium Communications (IRDM - Free Report) is slated to release third-quarter 2022 results on Oct 20, before market open.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 2 cents, unchanged in the past 30 days. In the year-ago quarter, the company had reported loss of 2 cents per share.
The consensus estimate for revenues is pegged at $180.8 million, suggesting year-over-year growth of 11.5%.
This U.S.-based satellite communications company posted solid results in the last reported quarter. Iridium reported second-quarter 2022 earnings of 4 cents per share, ahead of the Zacks Consensus Estimate of breakeven earnings. The company had delivered earnings of 3 cents in the prior-year quarter. Quarterly revenues of $174.9 million increased 17% from the year-ago quarter’s levels and surpassed the consensus mark by 6.6%.
Over the trailing four quarters, the company has an average surprise of 100%.
Iridium Communications Inc Price and EPS Surprise
Iridium Communications Inc price-eps-surprise | Iridium Communications Inc Quote
Factors at Play
Iridium is likely to have benefited from momentum in that equipment and services business that has been boosting hardware sales. The company’s cost-effective broadband services, provided through Certus technology, position it well for growth. The company is likely to have gained from the increasing penetration of its new lineup of services, especially L-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 Jun 30, 2022, the company had 1,875,000 billable subscribers, up 16% compared with 1,616,000 at the end of the prior-year quarter.
Continued momentum in the 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 subscribers grew 22% year over year.
The Zacks Consensus Estimate for its quarterly revenues from the service segment (which accounts for a significant chunk of its total revenues) is pegged at $137 million, indicating a rise of 7% from the year-ago quarter’s levels.
The consensus mark for quarterly revenues from the Subscriber Equipment segment stands at $31.69 million, indicating an increase of 17.8% year over year. The consensus mark for revenues from the Engineering and Support Service segment is pegged at $11.1 million, up 48.2% from the prior-year quarter’s levels.
Continued supply-chain disruptions are likely to have acted as a headwind for Iridium’s third-quarter revenues. Further, surging operating expenses and increased lead time to obtain spectrum licenses are likely to have weighed on the company’s margins to some extent.
Recent Development
During the quarter under review, Iridium announced that it is working with SpaceX to launch up to five of its remaining additional ground satellites of the Iridium Next Program through SpaceX’s Falcon 9 rocket. The launch, dubbed as Iridium-9, is scheduled in mid-2023 from Vandenberg Space Force Base. Currently, Iridium has 66 operational satellites and nine on-orbit spares. It has six additional satellites on the ground, five of which will be part of the Iridium-9 launch.
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 1 currently.
Stocks With the Favorable Combination
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Tractor Supply Corporation (TSCO - Free Report) has an Earnings ESP of +1.08% and currently carries a Zacks Rank #2. Tractor Supply is slated to release quarterly numbers on Oct 20. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TSCO’s to-be-reported quarter’s earnings and revenues is pegged at $2.08 per share and $3.28 billion, respectively. TSCO surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 10.2%. Shares of TSCO have lost 2.9% in the past year.
Lockheed Martin (LMT - Free Report) has an Earnings ESP of +1.41% and currently has a Zacks Rank #3. Lockheed Martin is scheduled to report earnings results on Oct 18.
The Zacks Consensus Estimate for Lockheed Martin’s to-be-reported quarter’s earnings and revenues is pegged at $6.60 per share and $16.82 billion, respectively. Lockheed Martin surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 64.5%. Shares of LMT have gained 6.6% in the past year.
AT&T (T - Free Report) has an Earnings ESP of +2.70% and currently carries a Zacks Rank of 3. AT&T is set to announce quarterly figures on Oct 20.
The Zacks Consensus Estimate for AT&T’s to-be-reported quarter’s earnings and revenues is pegged at 61 cents per share and $29.82 billion, respectively. Shares of AT&T have lost 40.8% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.