Iridium (IRDM) Q3 Earnings: What To Expect

IRDM Cover Image

Satellite communications provider will be reporting earnings this Thursday before market hours. Here’s what investors should know.

Iridium beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $216.9 million, up 7.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates. It reported 1.92 million subscribers, up 4.7% year on year.

Is Iridium a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Iridium’s revenue to grow 4.9% year on year to $223.2 million, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.

Iridium Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Iridium has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.

With Iridium being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for telecommunication services stocks. However, investors in the segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Iridium is up 4.8% during the same time and is heading into earnings with an average analyst price target of $32.63 (compared to the current share price of $19.00).

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