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Iridium (IRDM) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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Iridium Communications (IRDM - Free Report) reported earnings of 8 cents per share for first-quarter 2023 which handily beat the Zacks Consensus Estimate of loss of 2 cents. The company had reported earnings of 2 cents in the prior-year quarter.
Quarterly revenues were $205.3 million, up 22% from the year-ago quarter’s levels. The upside can be attributed to higher demand for equipment and momentum in both Service, and Engineering and Support Service segments. The top line surpassed the Zacks Consensus Estimate by 9.9%.
Total Service revenues rose 10% year over year to $139.3 million. Strong recurring revenues from a growing subscriber base resulted in the upside. Service revenues contributed 68% to total revenues in the first quarter.
Iridium Communications Inc Price, Consensus and EPS Surprise
Solid performance in commercial broadband, voice and data, and IoT contributed to the segment’s top-line performance.
Subscriber Equipment revenues rose 23.5% year over year to $41.7 million due to its higher demand. Engineering and Support Service revenues rose 190% to $24.3 million from the prior-year quarter’s levels, mainly due to increased commercial and government activity.
In response to the results, shares of IRDM were up 10.9% in trading on Apr 20 and closed the session at $65.03. In the past year, shares have gained 68.5% against the Zacks sub-industry’s decline of 23.6%.
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $182.1 million, up 22.2% from the prior-year quarter, mainly due to higher cost of subscriber equipment sales, selling, general and administrative expenses, and cost of services.
Operational EBITDA (OEBITDA) rose 8% year over year to $111.9 million. The upside was mainly driven by gains across the board.
Operating income came in at $23.1 million compared with $19.2 million reported in the year-ago quarter.
As of Mar 31, the company had 2,051,000 billable subscribers, up 15% compared with 1,781,000 at the end of the prior-year quarter. The year-over-year increase was backed by strength in commercial IoT.
As of Mar 31, total cash and cash equivalents were $126.6 million with $1.4 billion of net debt. Capital expenditures were $22.9 million in the quarter under review.
In the first quarter of 2023, IRDM repurchased 0.9 million shares worth $53.1 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 Mar 31,2023, the company had shares worth $126.5 million under the repurchase program.
2023 Guidance Reiterated
For 2023, management expects total Service revenue growth between 9% and 11% while OEBITDA is expected in the range of $455-$465 million. IRDM expects to return nearly $245 million of capital to shareholders in the current year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has increased 1.2% in the past 60 days to $5.83 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 32% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 176.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 15.2% in the past year.
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Iridium (IRDM) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Iridium Communications (IRDM - Free Report) reported earnings of 8 cents per share for first-quarter 2023 which handily beat the Zacks Consensus Estimate of loss of 2 cents. The company had reported earnings of 2 cents in the prior-year quarter.
Quarterly revenues were $205.3 million, up 22% from the year-ago quarter’s levels. The upside can be attributed to higher demand for equipment and momentum in both Service, and Engineering and Support Service segments. The top line surpassed the Zacks Consensus Estimate by 9.9%.
Total Service revenues rose 10% year over year to $139.3 million. Strong recurring revenues from a growing subscriber base resulted in the upside. Service revenues contributed 68% to total revenues in the first quarter.
Iridium Communications Inc Price, Consensus and EPS Surprise
Iridium Communications Inc price-consensus-eps-surprise-chart | Iridium Communications Inc Quote
Solid performance in commercial broadband, voice and data, and IoT contributed to the segment’s top-line performance.
Subscriber Equipment revenues rose 23.5% year over year to $41.7 million due to its higher demand. Engineering and Support Service revenues rose 190% to $24.3 million from the prior-year quarter’s levels, mainly due to increased commercial and government activity.
In response to the results, shares of IRDM were up 10.9% in trading on Apr 20 and closed the session at $65.03. In the past year, shares have gained 68.5% against the Zacks sub-industry’s decline of 23.6%.
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $182.1 million, up 22.2% from the prior-year quarter, mainly due to higher cost of subscriber equipment sales, selling, general and administrative expenses, and cost of services.
Operational EBITDA (OEBITDA) rose 8% year over year to $111.9 million. The upside was mainly driven by gains across the board.
Operating income came in at $23.1 million compared with $19.2 million reported in the year-ago quarter.
As of Mar 31, the company had 2,051,000 billable subscribers, up 15% compared with 1,781,000 at the end of the prior-year quarter. The year-over-year increase was backed by strength in commercial IoT.
As of Mar 31, total cash and cash equivalents were $126.6 million with $1.4 billion of net debt. Capital expenditures were $22.9 million in the quarter under review.
In the first quarter of 2023, IRDM repurchased 0.9 million shares worth $53.1 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 Mar 31,2023, the company had shares worth $126.5 million under the repurchase program.
2023 Guidance Reiterated
For 2023, management expects total Service revenue growth between 9% and 11% while OEBITDA is expected in the range of $455-$465 million. IRDM expects to return nearly $245 million of capital to shareholders in the current year.
Zacks Rank & Stocks to Consider
Iridium currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Asure Software (ASUR - Free Report) and Salesforce (CRM - Free Report) . Asure Software and Salesforce currently sport a Zacks Rank #1 (Strong Buy) whereas Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has increased 1.2% in the past 60 days to $5.83 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.2%. Shares of ANET have increased 32% in the past year.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings has increased 25% in the past 60 days to 35 cents per share. The long-term earnings growth rate is anticipated to be 25%.
Asure Software’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 445.8%. Shares of ASUR have increased 176.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s 2023 earnings has increased 21.5% in the past 60 days to $7.11 per share. The long-term earnings growth rate is anticipated to be 16.8%.
Salesforce’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.6%. Shares of the company have increased 15.2% in the past year.