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Iridium's (IRDM) Q3 Earnings In Line, Revenues Beat Estimates
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Iridium Communications Inc (IRDM - Free Report) reported earnings of 2 cents per share for third-quarter 2022, in line with the Zacks Consensus Estimate. The company had incurred a loss of 2 cents in the prior-year quarter.
Quarterly revenues were $184.1 million, up 14% from the year-ago quarter’s levels. The upside can be attributed to higher demand for equipment and momentum in engineering and support projects. The top line surpassed the consensus mark by 1.8%.
Total service revenues rose 9% year over year to $139 million. The upside can be attributed to strong recurring revenues from a growing subscriber base. Service revenues contributed 76% to total revenues in the third quarter. Solid performance in commercial broadband, voice and data, and IoT contributed to the segment’s top-line performance.
Iridium Communications Inc Price, Consensus and EPS Surprise
Subscriber equipment revenues rose 3.9% year over year to $28 million due to its higher demand. Engineering and support service revenues rose 128.7% to $17.1 million from the prior-year quarter’s levels, mainly due to increased activity with the U.S. government. This includes new contract work for the Space Development Agency.
Driven by strong quarterly results, the company revised its outlook for 2022. IRDM expects service revenues to increase between 8% and 9% in 2022 against the earlier guidance of 7%-9% growth in 2022. Iridium now expects full-year 2022 OEBITDA to be $420 million compared with the earlier guidance of $410-$420 million.
Iridium’s commercial service revenues are expected to benefit from growth in IoT, ongoing activations and solid uptake of the company’s broadband services.
In response to the results, shares of the company were down 2.4% in trading on Oct 20 and closed the session at $46.33. In the past year, shares have gained 12.4% against the Zacks sub-industry’s decline of 20.3%
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $166.2 million, up 13% from the prior-year quarter, mainly due to higher cost of subscriber equipment sales, selling, general and administrative and cost of services. Operational EBITDA (OEBITDA) rose 8% year over year to $107.8 million. The upside was mainly driven by higher revenues.
Operating income came in at $17.9 million compared with $15 million reported in the year-ago quarter.
As of Sep 30, the company had 1,973,000 billable subscribers, up 17% compared with 1,690,000 at the end of the prior-year quarter. The year-over-year increase was backed by strength in commercial IoT.
As of Sep 30, the company had $218.8 million in cash and cash equivalents with $1.39 billion of net debt. Capital expenditures were $13.7 million in the quarter under review.
In the quarter under review, the company repurchased 1.8 million shares worth $80.2 million. On Mar 7, 2022, Iridium’s board of directors approved a new share repurchase authorization of an additional $300 million through Dec 31, 2023. As of Sep 30, 2022, the company had share worth $187.2 million under repurchase program.
Zacks Rank & Other Stocks to Consider
Iridium currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, up 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 4.5% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%. Shares of BLKB have lost 29% in the past year.
The Zacks Consensus Estimate for Maxar’s 2022 earnings is pegged at 32 cents per share. The long-term earnings growth rate stands 30.7%.
MAXR’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 140%. Shares of MAXR have lost 31.1% in the past year.
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Iridium's (IRDM) Q3 Earnings In Line, Revenues Beat Estimates
Iridium Communications Inc (IRDM - Free Report) reported earnings of 2 cents per share for third-quarter 2022, in line with the Zacks Consensus Estimate. The company had incurred a loss of 2 cents in the prior-year quarter.
Quarterly revenues were $184.1 million, up 14% from the year-ago quarter’s levels. The upside can be attributed to higher demand for equipment and momentum in engineering and support projects. The top line surpassed the consensus mark by 1.8%.
Total service revenues rose 9% year over year to $139 million. The upside can be attributed to strong recurring revenues from a growing subscriber base. Service revenues contributed 76% to total revenues in the third quarter. Solid performance in commercial broadband, voice and data, and IoT contributed to the segment’s top-line performance.
Iridium Communications Inc Price, Consensus and EPS Surprise
Iridium Communications Inc price-consensus-eps-surprise-chart | Iridium Communications Inc Quote
Subscriber equipment revenues rose 3.9% year over year to $28 million due to its higher demand. Engineering and support service revenues rose 128.7% to $17.1 million from the prior-year quarter’s levels, mainly due to increased activity with the U.S. government. This includes new contract work for the Space Development Agency.
Driven by strong quarterly results, the company revised its outlook for 2022. IRDM expects service revenues to increase between 8% and 9% in 2022 against the earlier guidance of 7%-9% growth in 2022. Iridium now expects full-year 2022 OEBITDA to be $420 million compared with the earlier guidance of $410-$420 million.
Iridium’s commercial service revenues are expected to benefit from growth in IoT, ongoing activations and solid uptake of the company’s broadband services.
In response to the results, shares of the company were down 2.4% in trading on Oct 20 and closed the session at $46.33. In the past year, shares have gained 12.4% against the Zacks sub-industry’s decline of 20.3%
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $166.2 million, up 13% from the prior-year quarter, mainly due to higher cost of subscriber equipment sales, selling, general and administrative and cost of services. Operational EBITDA (OEBITDA) rose 8% year over year to $107.8 million. The upside was mainly driven by higher revenues.
Operating income came in at $17.9 million compared with $15 million reported in the year-ago quarter.
As of Sep 30, the company had 1,973,000 billable subscribers, up 17% compared with 1,690,000 at the end of the prior-year quarter. The year-over-year increase was backed by strength in commercial IoT.
As of Sep 30, the company had $218.8 million in cash and cash equivalents with $1.39 billion of net debt. Capital expenditures were $13.7 million in the quarter under review.
In the quarter under review, the company repurchased 1.8 million shares worth $80.2 million. On Mar 7, 2022, Iridium’s board of directors approved a new share repurchase authorization of an additional $300 million through Dec 31, 2023. As of Sep 30, 2022, the company had share worth $187.2 million under repurchase program.
Zacks Rank & Other Stocks to Consider
Iridium currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Maxar Technologies . Pure Storage sports a Zacks Rank #1, while Maxar and Blackbaud carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, up 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 4.5% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%. Shares of BLKB have lost 29% in the past year.
The Zacks Consensus Estimate for Maxar’s 2022 earnings is pegged at 32 cents per share. The long-term earnings growth rate stands 30.7%.
MAXR’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 140%. Shares of MAXR have lost 31.1% in the past year.