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Iridium Communications (IRDM) Rises As Market Takes a Dip: Key Facts

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In the latest market close, Iridium Communications (IRDM - Free Report) reached $25.42, with a +0.87% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.03%.

Coming into today, shares of the satellite phone company had lost 11.55% in the past month. In that same time, the Computer and Technology sector gained 4.26%, while the S&P 500 gained 2.57%.

The upcoming earnings release of Iridium Communications will be of great interest to investors. The company's earnings report is expected on April 18, 2024. The company is predicted to post an EPS of $0.16, indicating a 100% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $196.81 million, down 4.12% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $799.04 million, which would represent changes of +500% and +1.05%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Iridium Communications. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 11% higher. Iridium Communications is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Iridium Communications is currently trading at a Forward P/E ratio of 34.84. This valuation marks a premium compared to its industry's average Forward P/E of 10.74.

The Satellite and Communication industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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