Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Sco ...

Iridium Communications (IRDM) reported earnings per share (EPS) of 27 cents for the first quarter of 2025, beating the Zacks Consensus Estimate by 22.7%. The bottom line compared favorably with the prior-year quarter's figure of 16 cents. (See the Zacks  Earnings Calendar to stay ahead of market-making news.)Quarterly revenues reached $214.9 million, representing a 5% increase from the previous year, driven by rising demand for Iridium’s mission-critical services. Despite the potential for evolving U.S. tra ...

Iridium Communications Inc. (NASDAQ:IRDM) Q1 2025 Results Conference Call April 22, 2025 8:30 AM ET Company Participants Ken Levy - Vice President, Investor Relations Matt Desch - Chief Executive Officer Vince O’Neill - Chief Financial Officer Conference Call Participants Ric Prentiss - Raymond James Edison Yu - Deutsche Bank Colin Canfield - Cantor Hamed Khorsand - BWS Financial Chris Quilty - Quilty Space Matthew Robillard - Barclays Louie DiPalma - William Blair Operator Good day, and welcome to the Irid ...

Iridium Communications (IRDM) reported $214.88 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 5.4%. EPS of $0.27 for the same period compares to $0.16 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $212.87 million, representing a surprise of +0.94%. The company delivered an EPS surprise of +22.73%, with the consensus EPS estimate being $0.22.While investors scrutinize revenue and earnings changes year-over-year and how they compare ...

Iridium Communications (IRDM) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.73%. A quarter ago, it was expected that this satellite phone company would post earnings of $0.16 per share when it actually produced earnings of $0.31, delivering a surprise of 93.75%.Over the last four ...

Revenue and Income - Total revenue for the three months ended March 31, 2025, was $214.878 million, an increase of $11.025 million, or 5%, compared to $203.853 million in the same period of 2024[101] - Net income for the three months ended March 31, 2025, was $30.412 million, a 55% increase from $19.653 million in the same period of 2024[101] - Operating income increased by $10.617 million, or 21%, to $60.388 million for the three months ended March 31, 2025, compared to $49.771 million in the prior year[101] - Net income was $30.4 million for the three months ended March 31, 2025, compared to $19.7 million for the prior year period, reflecting a $10.8 million improvement[116] Subscriber and Service Revenue - The number of billable subscribers increased by 110,000, or 5%, to approximately 2,443,000 as of March 31, 2025, up from 2,333,000 a year earlier[99] - Commercial IoT revenue rose by $4.4 million, or 11%, driven by a 7% increase in billable subscribers and a new contract with a large customer[102] - Engineering and support service revenue increased by $7.0 million, or 23%, for the three months ended March 31, 2025, primarily due to increased work under government contracts[104] - Government service revenue slightly increased, reflecting a contractual step up in the EMSS contract on September 15, 2024[103] Costs and Expenses - Cost of services (exclusive of depreciation and amortization) increased by $2.3 million, or 5%, primarily due to increased work under government projects[106] - Subscriber equipment revenue decreased by $1.7 million, or 7%, for the three months ended March 31, 2025, primarily due to a decrease in the volume of Short Burst Data devices[104] - Cost of subscriber equipment decreased by $1.0 million, or 7%, for the three months ended March 31, 2025, primarily due to a decrease in volume of Short Burst Data device sales[107] - Research and development expenses decreased by $1.8 million, or 25%, for the three months ended March 31, 2025, due to lower spending on device-related features[108] - Selling, general and administrative expenses decreased by $1.1 million, or 3%, for the three months ended March 31, 2025, primarily due to decreases in headcount costs and professional fees[110] Cash Flow and Capital Expenditures - Cash provided by operating activities decreased by $10.3 million to $61.1 million for the three months ended March 31, 2025[130] - Cash used in investing activities increased by $10.0 million to $24.5 million for the three months ended March 31, 2025, primarily due to increased capital expenditures[132] - The company expects capital expenditures of approximately $90.0 million in 2025, which are anticipated to moderate through the end of the decade[117] Debt and Financial Instruments - The Term Loan has an outstanding aggregate balance of $1,803.2 million as of March 31, 2025, with interest at an annual rate equal to SOFR plus 2.25%[136] - SOFR increased by 25 basis points, leading to an expected annual interest expense increase of less than $0.1 million related to the Revolving Facility[138] Credit Risk Management - Financial instruments subject to credit risk include cash and cash equivalents, and accounts receivable, with cash primarily invested in a money market fund[139] - The company maintains cash deposits in excess of federally insured limits to mitigate credit risk[139] - Accounts receivable are due from both domestic and international customers, with credit evaluations performed to assess financial conditions[139] - Reserves are recorded to provide for estimated credit losses on accounts receivable[139] - Accounts payable are owed to both domestic and international vendors, indicating a diverse supplier base[139] Acquisition Impact - The acquisition of Satelles, Inc. is expected to generate substantial growth in service revenue and incremental equipment and engineering services revenue over the coming years[97]

Financial Performance - Iridium reported Q1 2025 net income of $30.4 million, or $0.27 per diluted share, up from $19.7 million, or $0.16 per diluted share in Q1 2024, representing a 54% increase in net income year-over-year [2]. - Total revenue for Q1 2025 was $214.9 million, a 5% increase compared to the same period in 2024, with service revenue contributing $154.3 million and equipment revenue at $60.6 million [2]. - Total revenue for Q1 2025 was $214,878,000, representing a 5% increase from $203,853,000 in Q1 2024 [21]. - Total service revenue increased by 4% to $154,292,000 in Q1 2025, up from $148,577,000 in Q1 2024 [22]. - Operational EBITDA for Q1 2025 was $122,118,000, a 6% increase compared to $115,014,000 in Q1 2024 [22]. - Net income for Q1 2025 was $30,412,000, up from $19,653,000 in Q1 2024, marking a significant increase [21]. Subscriber Growth - The company ended Q1 2025 with 2,443,000 total billable subscribers, a 5% increase from 2,333,000 in Q1 2024, driven by growth in commercial IoT [3]. - The number of total billable subscribers rose to 2,443 in Q1 2025, a 5% increase from 2,333 in Q1 2024 [23]. Revenue Breakdown - Commercial service revenue was $127.5 million, up 4% year-over-year, with commercial IoT data revenue increasing by 11% to $43.8 million [8]. - IoT data service revenue grew by 11% to $43,856,000 in Q1 2025, compared to $39,455,000 in Q1 2024 [22]. - Average Revenue Per User (ARPU) for IoT data increased by 2% to $7.75 in Q1 2025, compared to $7.57 in Q1 2024 [23]. Future Outlook - Iridium expects total service revenue growth of 5% to 7% for full-year 2025, with total service revenue for 2024 at $614.9 million [13]. - The company anticipates OEBITDA for 2025 to be between $490 million and $500 million, compared to $470.6 million in 2024 [13]. Shareholder Returns - The company plans to increase its quarterly dividend to $0.15 per share starting in Q3 2025, marking a 5.5% increase from the previous dividend [10]. - Iridium repurchased approximately 2.4 million shares for $70.0 million during the quarter, with $360.3 million remaining authorized for repurchase through December 2027 [11]. Debt and Expenses - The company reported a net debt of $1,772,281,000 as of Q1 2025, an increase from $1,446,913,000 in Q1 2024 [22]. - Total operating expenses for Q1 2025 were $154,490,000, slightly up from $154,082,000 in Q1 2024 [21]. - Capital expenditures for Q1 2025 were $24,546,000, compared to $14,564,000 in Q1 2024 [22]. Leverage - Iridium's net leverage was 3.7 times trailing twelve months OEBITDA at the end of Q1 2025, with a target to reduce it below 4.0 times through 2026 [14].

Core Viewpoint - Iridium Communications (IRDM) has received a Zacks Rank upgrade to 2 (Buy), indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with short-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [3][5]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Company Performance Indicators - For Iridium, the upgrade reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - The Zacks Consensus Estimate for Iridium indicates an expected earnings per share of $0.98 for the fiscal year ending December 2025, representing a year-over-year increase of 4.3% [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive a 'Strong Buy' or 'Buy' rating, highlighting their superior earnings estimate revisions [8][9].

Iridium Communications (IRDM) is slated to release first-quarter 2025 earnings on April 22, before market open.The Zacks Consensus Estimate for revenues is pegged at $212.9 million, indicating an increase of 4.4% from the year-ago level. The consensus estimate for earnings per share is 22 cents, unchanged in the past 30 days. In the year-ago quarter, the company reported earnings of 16 cents. IRDM’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while meeting once, with t ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Develope ...