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Factors to Note Ahead of Iridium (IRDM) Q4 Earnings Release
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Iridium Communications (IRDM - Free Report) is slated to release fourth-quarter 2022 results on Feb 16, 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 a loss of 4 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $174.9 million, suggesting year-over-year growth of 12.2%.
Over the trailing four quarters, the company has an average surprise of 100%.
Iridium is likely to have benefited from momentum in higher demand in Services, and Engineering and Support business segments. 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 fourth-quarter performance. 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.
The Zacks Consensus Estimate for quarterly revenues from the Service segment (which accounts for a significant chunk of total revenues) is pegged at $137 million, indicating a rise of 7.9% from the year-ago quarter’s levels.
Continued momentum in the commercial IoT business (particularly personal satellite communications) and broadband business is likely to have acted as a tailwind.
The Zacks Consensus Estimate for quarterly revenues from the Subscriber Equipment segment is pegged at $22.94 million, indicating an increase of 17.9% year over year. The Zacks Consensus Estimate for revenues from the Engineering and Support Service segment is pegged at $14.81 million, up 53% from the prior-year quarter’s levels.
However, continued supply-chain disruptions are likely to have acted as headwinds for Iridium’s fourth-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
In January 2023, Iridium announced that it has entered into an agreement with Qualcomm Technologies to allow satellite messaging and emergency services in smartphones powered by Qualcomm's Snapdragon Mobile Platforms.
The integration will be possible through Qualcomm's Snapdragon Satellite solution, which is supported by Iridium's satellite constellation. The service is expected to be available in premium Android smartphones in selected regions starting in the second half of 2023.
Iridium’s satellite constellation consists of several active satellites in low Earth orbit to provide global voice and data communications coverage. It uses an L-band frequency which is resilient to extreme weather conditions.
What Our Model Says?
Our proven model does not conclusively predict an earnings beat for Iridium this time around. The 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.
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 3 currently.
Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for PBF’s to-be-reported quarter’s earnings and revenues are pegged at $4.95 per share and $9.7 billion, respectively. Shares of the company have gained 120.8% in the past year.
IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +16.44% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues are pegged at 15 cents per share and $95.6 million, respectively. Shares of the company have lost 20.4% in the past year.
Lucid Group, Inc (LCID - Free Report) has an Earnings ESP of +3.90% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate are pegged at a loss of 39 cents per share and $289.8 million for revenues, respectively. Shares of LCID have lost 64.2% of their value 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) Q4 Earnings Release
Iridium Communications (IRDM - Free Report) is slated to release fourth-quarter 2022 results on Feb 16, 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 a loss of 4 cents per share.
The Zacks Consensus Estimate for revenues is pegged at $174.9 million, suggesting year-over-year growth of 12.2%.
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 higher demand in Services, and Engineering and Support business segments. 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 fourth-quarter performance. 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.
The Zacks Consensus Estimate for quarterly revenues from the Service segment (which accounts for a significant chunk of total revenues) is pegged at $137 million, indicating a rise of 7.9% from the year-ago quarter’s levels.
Continued momentum in the commercial IoT business (particularly personal satellite communications) and broadband business is likely to have acted as a tailwind.
The Zacks Consensus Estimate for quarterly revenues from the Subscriber Equipment segment is pegged at $22.94 million, indicating an increase of 17.9% year over year. The Zacks Consensus Estimate for revenues from the Engineering and Support Service segment is pegged at $14.81 million, up 53% from the prior-year quarter’s levels.
However, continued supply-chain disruptions are likely to have acted as headwinds for Iridium’s fourth-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
In January 2023, Iridium announced that it has entered into an agreement with Qualcomm Technologies to allow satellite messaging and emergency services in smartphones powered by Qualcomm's Snapdragon Mobile Platforms.
The integration will be possible through Qualcomm's Snapdragon Satellite solution, which is supported by Iridium's satellite constellation. The service is expected to be available in premium Android smartphones in selected regions starting in the second half of 2023.
Iridium’s satellite constellation consists of several active satellites in low Earth orbit to provide global voice and data communications coverage. It uses an L-band frequency which is resilient to extreme weather conditions.
What Our Model Says?
Our proven model does not conclusively predict an earnings beat for Iridium this time around. The 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.
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 3 currently.
Stocks With Favorable Combination
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
PBF Energy (PBF - Free Report) has an Earnings ESP of +4.45% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PBF’s to-be-reported quarter’s earnings and revenues are pegged at $4.95 per share and $9.7 billion, respectively. Shares of the company have gained 120.8% in the past year.
IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +16.44% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues are pegged at 15 cents per share and $95.6 million, respectively. Shares of the company have lost 20.4% in the past year.
Lucid Group, Inc (LCID - Free Report) has an Earnings ESP of +3.90% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate are pegged at a loss of 39 cents per share and $289.8 million for revenues, respectively. Shares of LCID have lost 64.2% of their value in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.