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Iridium (IRDM) to Report Q4 Earnings: What's in the Cards?
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Iridium Communications (IRDM - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before market open. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 4 cents per share on revenues of $152.33 million.
This U.S.-based satellite communications company posted solid results in the last reported quarter, with the bottom line matching the Zacks Consensus Estimate. This performance stemmed from remarkable service revenues, high subscriber additions, healthy liquidity position, and strong operational momentum.
Over the trailing four quarters, the company surpassed on three occasions and met estimates once, the average surprise being 45.6%. This is depicted in the graph below:
The Zacks Consensus Estimate for Iridium’s fourth-quarter loss per share has remained unchanged in the past 90 days. It compares favorably with the year-ago quarter’s loss of 6 cents per share, indicating a year-on-year improvement of 33.33%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 3.97%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Iridium for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A 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, as elaborated below.
Earnings ESP: Iridium has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Iridium’s cost-effective broadband services, provided through the iCertus technology, position it well for growth. In fact, the company’s recurring service revenue base, driven by robust subscriber growth and mobile penetration, lends it a competitive edge and is anticipated to have driven its fourth-quarter performance.
During the quarter under review, Iridium made its Iridium Certus 100 midband service commercially available for maritime, land mobile, IoT, aviation and government customers. Iridium Certus 100 provides a unique blend of capabilities for satellite connectivity and has been designed to address market demand for new satcom solutions that require small form factor and battery or line-powered mobile equipment for two-way IP data and high-quality voice services. This is likely to have boosted the company’s performance during the to-be-reported quarter.
Markedly, the Zacks Consensus Estimate for its quarterly revenues from the service segment (which accounts for a major chunk of its total revenues) is pinned at $126 million, indicating a rise from the $117 million reported in the prior-year quarter.
However, the Zacks Consensus Estimate for quarterly revenues from the Subscriber Equipment segment is pinned at $18.5 million, indicating a fall from the $18.92 million reported in the prior-year quarter. Further, the consensus mark for revenues from the Engineering and Support Service segment is pegged at $8.38 million, calling for a decline from the $10.73 million recorded prior-year quarter.
Further, supply-chain disruptions due to the pandemic pose a significant headwind and are likely to have had an adverse impact on Iridium’s fourth-quarter revenues. Further, downward pressure on prices, surging operating expenses and increased lead time to obtain spectrum licenses are likely to have dented the company’s margins to some extent.
Stocks With Favorable Combination
Here are a few other stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +4.88% and carries a Zacks Rank of 3 currently. Dell is set to announce quarterly figures on Feb 24.
The Zacks Consensus Estimate for Dell’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $27.47 billion, respectively. DELL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 17.9%.
Etsy (ETSY - Free Report) has an Earnings ESP of +7.63% and carries a Zacks Rank #3 at present. Etsy is scheduled to report earnings results on Feb 24.
The Zacks Consensus Estimate for Etsy’s to-be-reported quarter’s earnings and revenues is pegged at 76 cents per share and $686.3 million, respectively. ETSY surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 34.6%.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and currently carries a Zacks Rank #3. Ambarella is slated to release quarterly numbers on Feb 28.
The Zacks Consensus Estimate for Ambarella’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $90.45 million, respectively. Encouragingly, AMBA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 41.7%.
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Iridium (IRDM) to Report Q4 Earnings: What's in the Cards?
Iridium Communications (IRDM - Free Report) is slated to release fourth-quarter 2021 results on Feb 17, before market open. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of 4 cents per share on revenues of $152.33 million.
This U.S.-based satellite communications company posted solid results in the last reported quarter, with the bottom line matching the Zacks Consensus Estimate. This performance stemmed from remarkable service revenues, high subscriber additions, healthy liquidity position, and strong operational momentum.
Over the trailing four quarters, the company surpassed on three occasions and met estimates once, the average surprise being 45.6%. This is depicted in the graph below:
Iridium Communications Inc Price and EPS Surprise
Iridium Communications Inc price-eps-surprise | Iridium Communications Inc Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for Iridium’s fourth-quarter loss per share has remained unchanged in the past 90 days. It compares favorably with the year-ago quarter’s loss of 6 cents per share, indicating a year-on-year improvement of 33.33%. Further, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year rise of 3.97%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Iridium for the to-be-reported quarter, as it does not have the right combination of the two key ingredients. A 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, as elaborated below.
Earnings ESP: Iridium has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is on par with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Iridium carries a Zacks Rank of 3 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Iridium’s cost-effective broadband services, provided through the iCertus technology, position it well for growth. In fact, the company’s recurring service revenue base, driven by robust subscriber growth and mobile penetration, lends it a competitive edge and is anticipated to have driven its fourth-quarter performance.
During the quarter under review, Iridium made its Iridium Certus 100 midband service commercially available for maritime, land mobile, IoT, aviation and government customers. Iridium Certus 100 provides a unique blend of capabilities for satellite connectivity and has been designed to address market demand for new satcom solutions that require small form factor and battery or line-powered mobile equipment for two-way IP data and high-quality voice services. This is likely to have boosted the company’s performance during the to-be-reported quarter.
Markedly, the Zacks Consensus Estimate for its quarterly revenues from the service segment (which accounts for a major chunk of its total revenues) is pinned at $126 million, indicating a rise from the $117 million reported in the prior-year quarter.
However, the Zacks Consensus Estimate for quarterly revenues from the Subscriber Equipment segment is pinned at $18.5 million, indicating a fall from the $18.92 million reported in the prior-year quarter. Further, the consensus mark for revenues from the Engineering and Support Service segment is pegged at $8.38 million, calling for a decline from the $10.73 million recorded prior-year quarter.
Further, supply-chain disruptions due to the pandemic pose a significant headwind and are likely to have had an adverse impact on Iridium’s fourth-quarter revenues. Further, downward pressure on prices, surging operating expenses and increased lead time to obtain spectrum licenses are likely to have dented the company’s margins to some extent.
Stocks With Favorable Combination
Here are a few other stocks lined up to release quarterly results soon. Encouragingly, our model predicts earnings beats for these stocks:
Dell Technologies (DELL - Free Report) has an Earnings ESP of +4.88% and carries a Zacks Rank of 3 currently. Dell is set to announce quarterly figures on Feb 24.
The Zacks Consensus Estimate for Dell’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $27.47 billion, respectively. DELL surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 17.9%.
Etsy (ETSY - Free Report) has an Earnings ESP of +7.63% and carries a Zacks Rank #3 at present. Etsy is scheduled to report earnings results on Feb 24.
The Zacks Consensus Estimate for Etsy’s to-be-reported quarter’s earnings and revenues is pegged at 76 cents per share and $686.3 million, respectively. ETSY surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 34.6%.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and currently carries a Zacks Rank #3. Ambarella is slated to release quarterly numbers on Feb 28.
The Zacks Consensus Estimate for Ambarella’s to-be-reported quarter’s earnings and revenues is pegged at 43 cents per share and $90.45 million, respectively. Encouragingly, AMBA surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 41.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.