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Factors to Note Ahead of Iridium's (IRDM) Q1 Earnings Release
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Iridium Communications (IRDM - Free Report) is slated to release first-quarter 2024 results on Apr 18, before market open.
The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 16 cents, unchanged in the past 30 days. In the year-ago quarter, the company reported EPS of 8 cents. The consensus estimate for revenues is pegged at $196.8 million, suggesting a decline of 4.1% from the year-ago levels.
IRDM’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing in the remaining quarters. The average surprise stands at 91.7%.
Iridium’s first-quarter performance is likely to have gained from momentum in Service segment’s revenues and increasing subscriber base. Service revenues contributed 76% to total revenues in the fourth quarter. Our estimate for segmental revenues is pegged at $147.7 million, implying a jump of 6% from a year ago.
Service revenues are gaining from strength in commercial service revenues. Commercial service revenues likely to have been aided by strength in voice and data, IoT data, broadband, and hosted payload and other data service business lines. Within commercial IoT, steady demand for personal satellite communications are likely to have driven the top-line performance.
We estimate commercial service revenues to be $121.4 million, suggesting a 7.5% climb from the prior-year actuals.
Higher Engineering and Support revenues (due to a rise in activity with the U.S. government especially the ongoing work on the Space Development Agency contract) bode well. Our estimate for quarterly revenues from the Engineering and Support segment is pegged at $24.2 million, almost unchanged from the year-earlier levels.
Management expects demand for satellite handsets and other Iridium hardware to decline to normalized levels going ahead. This is likely to hurt Subscriber Equipment segment’s performance. Our estimate for quarterly revenues from the Subscriber Equipment segment is pegged at $24.7 million, indicating a 40.6% decline from a year ago.
However, global macroeconomic weakness and inflation are likely to have acted as headwinds. Stiff competition in the satellite communications space, and higher research and development costs are concerning.
Recent Developments
On Apr 9, 2024, Iridium announced a new five-year commercial contract with L3Harris Technologies for Iridium satellite-based time and location (STL) service. Under the agreement, Iridium will extend its STL service to L3Harris-operated communications network backbone nodes numbering more than three dozen along with a similar number of Federal Aviation Administration facilities across the United States.
On Apr 3, 2024, Iridium closed the acquisition of Satelles, Inc., which is a leading provider of secure STL services. The buyout has enhanced Iridium’s solution portfolio with advanced STL services, which is now referred to as Iridium STL.
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 currently sports a Zacks Rank #1.
Stocks to Consider
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 IMAX’s to-be-reported quarter’s EPS and revenues is pegged at 10 cents and $75.8 million, respectively. Shares of IMAX have lost 20.6% in the past year.
Meta Platforms (META - Free Report) has an Earnings ESP of +3.26% and presently carries a Zacks Rank #2. META is slated to release quarterly numbers on Apr 24.
The Zacks Consensus Estimate for META’s to-be-reported quarter’s EPS and revenues is pegged at $4.31 and $36.15 billion, respectively. Shares of META have gained 133.9% in the past year.
Lam Research Corporation (LRCX - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank #2. LRCX is set to report quarterly figures on Apr 24.
The Zacks Consensus Estimate for LRCX’s to-be-reported quarter’s EPS and revenues is pegged at $7.23 and $3.71 billion, respectively. Shares of LRCX have surged 94.3% 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's (IRDM) Q1 Earnings Release
Iridium Communications (IRDM - Free Report) is slated to release first-quarter 2024 results on Apr 18, before market open.
The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 16 cents, unchanged in the past 30 days. In the year-ago quarter, the company reported EPS of 8 cents. The consensus estimate for revenues is pegged at $196.8 million, suggesting a decline of 4.1% from the year-ago levels.
IRDM’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing in the remaining quarters. The average surprise stands at 91.7%.
Iridium Communications Inc Price and EPS Surprise
Iridium Communications Inc price-eps-surprise | Iridium Communications Inc Quote
Factors at Play
Iridium’s first-quarter performance is likely to have gained from momentum in Service segment’s revenues and increasing subscriber base. Service revenues contributed 76% to total revenues in the fourth quarter. Our estimate for segmental revenues is pegged at $147.7 million, implying a jump of 6% from a year ago.
Service revenues are gaining from strength in commercial service revenues. Commercial service revenues likely to have been aided by strength in voice and data, IoT data, broadband, and hosted payload and other data service business lines. Within commercial IoT, steady demand for personal satellite communications are likely to have driven the top-line performance.
We estimate commercial service revenues to be $121.4 million, suggesting a 7.5% climb from the prior-year actuals.
Higher Engineering and Support revenues (due to a rise in activity with the U.S. government especially the ongoing work on the Space Development Agency contract) bode well. Our estimate for quarterly revenues from the Engineering and Support segment is pegged at $24.2 million, almost unchanged from the year-earlier levels.
Management expects demand for satellite handsets and other Iridium hardware to decline to normalized levels going ahead. This is likely to hurt Subscriber Equipment segment’s performance. Our estimate for quarterly revenues from the Subscriber Equipment segment is pegged at $24.7 million, indicating a 40.6% decline from a year ago.
However, global macroeconomic weakness and inflation are likely to have acted as headwinds. Stiff competition in the satellite communications space, and higher research and development costs are concerning.
Recent Developments
On Apr 9, 2024, Iridium announced a new five-year commercial contract with L3Harris Technologies for Iridium satellite-based time and location (STL) service. Under the agreement, Iridium will extend its STL service to L3Harris-operated communications network backbone nodes numbering more than three dozen along with a similar number of Federal Aviation Administration facilities across the United States.
On Apr 3, 2024, Iridium closed the acquisition of Satelles, Inc., which is a leading provider of secure STL services. The buyout has enhanced Iridium’s solution portfolio with advanced STL services, which is now referred to as Iridium STL.
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 currently sports a Zacks Rank #1.
Stocks to Consider
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.
IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +36.84% and currently carries a Zacks Rank #2. IMAX is scheduled to report quarterly earnings on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s EPS and revenues is pegged at 10 cents and $75.8 million, respectively. Shares of IMAX have lost 20.6% in the past year.
Meta Platforms (META - Free Report) has an Earnings ESP of +3.26% and presently carries a Zacks Rank #2. META is slated to release quarterly numbers on Apr 24.
The Zacks Consensus Estimate for META’s to-be-reported quarter’s EPS and revenues is pegged at $4.31 and $36.15 billion, respectively. Shares of META have gained 133.9% in the past year.
Lam Research Corporation (LRCX - Free Report) has an Earnings ESP of +0.26% and a Zacks Rank #2. LRCX is set to report quarterly figures on Apr 24.
The Zacks Consensus Estimate for LRCX’s to-be-reported quarter’s EPS and revenues is pegged at $7.23 and $3.71 billion, respectively. Shares of LRCX have surged 94.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.