Iridium Gearing Up to Report Q3 Earnings: Here's What to Expect

Core Viewpoint - Iridium Communications (IRDM) is expected to report third-quarter 2024 earnings on October 17, with revenue estimates indicating a 4.1% increase year-over-year to $205.7 million and earnings per share estimated at 20 cents, unchanged over the past 60 days [1][2]. Financial Performance - The Zacks Consensus indicates that Iridium's earnings have beaten estimates in two of the last four quarters, with an average surprise of 202.2%. However, the stock has declined by 31.2% over the past year, contrasting with a 1.3% gain in the sub-industry [3]. Revenue Segments - The Service segment is projected to generate revenues of $155.5 million, reflecting a 2.3% increase from the previous year [5]. - Commercial service revenues are anticipated to reach $129 million, marking a 2.8% rise year-over-year, driven by demand in voice and data services, IoT data, and broadband [6]. - Engineering and Support segment revenues are estimated at $27.3 million, an 8.1% increase from the prior year, bolstered by U.S. government contracts [8]. - Subscriber Equipment revenues are expected to be $21.2 million, a 4% increase from the previous year, as demand stabilizes [9]. Recent Developments - On September 25, 2024, Iridium's initiative to enhance Narrowband IoT capabilities was approved by the 3GPP, expanding its global connectivity reach with the upcoming Iridium NTN Direct service [10]. - The company announced a $500 million stock repurchase authorization, the largest in its history, extending total buyback authorization to $1.5 billion through December 31, 2027 [11]. - Iridium introduced the Iridium Certus GMDSS service on September 3, 2024, aimed at improving maritime safety and communication [12].