IRDM
Iridium shares edge higher despite second-quarter earnings miss (NASDAQ:IRDM)
Article Summary
HOLD- Iridium Communications Inc. (NASDAQ: IRDM) reported weaker-than-expected earnings as higher costs related to its pending Rocket Lab acquisition weighed on profitability, though revenue rose 4% year over year to $225.2 million, beating expectations, and shares rose 1.80% in premarket trading despite the earnings miss.
- Iridium Communications attributed the decline primarily to higher transaction costs associated with its proposed Rocket Lab Corporation acquisition, which is expected to close in mid-2027 subject to shareholder approval.
- Service revenue, which accounted for approximately 72% of total revenue during the quarter, increased 4% to $161.3 million, with commercial service revenue rising 4% and government service revenue up 3%.
- Operational EBITDA declined slightly to $119.1 million from $121.3M due to a $3.9 million increase in accrued expenses following changes to Iridium Communications's annual incentive compensation programme.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 4.1% | 25% | 20.0 ptsMinimal (4.1%) - Very weak |
| EPS Growth Next 5Y ? | 16.1% | 25% | 50.0 ptsMeets Minimum (16.1%) - Passes screener |
| Target Price Upside ? | 14.4% above | 20% | 0.0 ptsAbove Target (14.4% above) - Target: $41.00 vs Current: $47.87 |
| Gross Margin % ? | 47.3% | 15% | 60.0 ptsSolid (47.3%) - Decent margins |
| Drawdown from 52-Wk High ? | -16.3% | 15% | 40.0 ptsMild Pullback (-16.3%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About IRDM
- Iridium Communications Inc. provides mobile voice and data communications services and products to businesses, the United States and foreign governments, non-governmental organizations, and consumers in the United States, Canada, and internationally.
- The company offers mobile satellite communications services for land mobile end users and aviation sectors; broadband terminals, embedded devices, and handsets for merchant shipping, fishing, leisure and research vessels, and specialized watercraft; satellite-based IoT services; hosted payload and other data services; and other data services and engineering services.
- It also provides postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; Internet of Things (IoT); and satellite time and location services.
- In addition, the company offers personnel tracking devices; asset tracking devices for equipment, vehicles, and aircrafts; beyond-line-of-sight aircraft communications applications; maritime communications applications; specialized communications solutions for high-value individuals; and mobile communications and data devices for the military and other government agencies, such as secure satellite handsets; and maintenance services for the U.S. government's dedicated gateway.
- Further, it provides satellite handsets, voice and data modems, broadband data devices, and IoT data devices; and various accessories for its devices that include batteries, holsters, earbud headphones, portable auxiliary antennas, antenna adaptors, USB data cables, and charging units.
- The company sells its products and services to commercial end users through a wholesale distribution network that include service providers, and value-added resellers and value-added manufacturers.
- The company was formerly known as Iridium Holdings LLC and changed its name to Iridium Communications Inc. in September 2009.
- Iridium Communications Inc. is headquartered in McLean, Virginia.