We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Iridium Communications (IRDM - Free Report) reported earnings per share (EPS) of 27 cents for the second quarter of 2024, beating the consensus mark by 42.11%. The company incurred a loss of 24 cents per share in the prior-year quarter.
The primary driver behind the significant improvement in earnings was a reduction in depreciation expenses that stemmed from extended satellite lifespans and the prior year's write-off of ground spare assets.
Quarterly revenues were $201.1 million, up 4% from the year-ago level. The uptick was driven by robust performance in the Commercial service segment and Engineering and support service business. The Zacks Consensus Estimate was pegged at $201 million.
Total Service revenues rose 5% year over year to $152.5 million. Strong recurring revenues from an expanding subscriber base resulted in the upside. Service revenues contributed 76% to total revenues in the second quarter. Our estimate for the metric was $153.9 million.
Strength in voice and data and IoT amid soft results from commercial broadband and hosted payload and other data services contributed to the segment’s top-line performance.
Subscriber Equipment revenues fell 17% year over year to $22.8 million. Engineering and Support Service revenues rose 25% to $25.8 million from the prior-year level, driven by higher activity with the U.S. government.
Iridium Communications Inc Price, Consensus and EPS Surprise
In response to the results, shares of IRDM were up 7.25% in trading on Jul 23 and closed the session at $27.8. In the past year, shares have lost 53.6% compared with the Zacks sub-industry’s decline of 53.6%.
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $157.4 million compared with $209.1 in the prior-year quarter, primarily due to lower depreciation and amortization costs.
Operational EBITDA (OEBITDA) declined 2% year over year to $114 million. Operating income came in at $43.6 million against an operating loss of $16 million reported in the year-ago quarter.
As of Jun 30, the company had 2,413,000 billable subscribers, up 13% from 2,140,000 at the end of the prior-year quarter. The year-over-year increase was backed by the rapid adoption of Iridium’s services in various sectors.
The commercial sector, in particular, saw significant growth, contributing to 2,271,000 billable subscribers, up from 1,999,000 in the previous quarter. Notably, IoT data subscribers represented 81% of billable commercial subscribers at the end of the quarter.
As of Jun 30, total cash, cash equivalents and marketable securities were $63.5 million, with $1.6 billion of net debt. Capital expenditures were $12.4 million in the quarter under review.
Iridium maintained a strong capital position, repurchasing nearly 3.3 million shares of common stock for $96.6 million during the quarter. Additionally, it increased its quarterly dividend to 14 cents per share, resulting in year-to-date dividend payments of $32.8 million.
2024 Guidance Reiterated
For 2024, management expects total Service revenue growth between 4% and 6%. OEBITDA is projected to be in the range of $460-$470 million.
The company expects cash taxes to remain below $10 million annually through 2026. It aims to reduce net leverage below 4.0 times OEBITDA through 2026 and eventually below 2.0 times by the end of the decade.
BlackBerry’s (BB - Free Report) reported first-quarter fiscal 2025 adjusted adjusted loss per share of 3 cents, narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 47.9% in the past year.
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 25% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 62.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Iridium (IRDM) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Iridium Communications (IRDM - Free Report) reported earnings per share (EPS) of 27 cents for the second quarter of 2024, beating the consensus mark by 42.11%. The company incurred a loss of 24 cents per share in the prior-year quarter.
The primary driver behind the significant improvement in earnings was a reduction in depreciation expenses that stemmed from extended satellite lifespans and the prior year's write-off of ground spare assets.
Quarterly revenues were $201.1 million, up 4% from the year-ago level. The uptick was driven by robust performance in the Commercial service segment and Engineering and support service business. The Zacks Consensus Estimate was pegged at $201 million.
Total Service revenues rose 5% year over year to $152.5 million. Strong recurring revenues from an expanding subscriber base resulted in the upside. Service revenues contributed 76% to total revenues in the second quarter. Our estimate for the metric was $153.9 million.
Strength in voice and data and IoT amid soft results from commercial broadband and hosted payload and other data services contributed to the segment’s top-line performance.
Subscriber Equipment revenues fell 17% year over year to $22.8 million. Engineering and Support Service revenues rose 25% to $25.8 million from the prior-year level, driven by higher activity with the U.S. government.
Iridium Communications Inc Price, Consensus and EPS Surprise
Iridium Communications Inc price-consensus-eps-surprise-chart | Iridium Communications Inc Quote
In response to the results, shares of IRDM were up 7.25% in trading on Jul 23 and closed the session at $27.8. In the past year, shares have lost 53.6% compared with the Zacks sub-industry’s decline of 53.6%.
Image Source: Zacks Investment Research
Other Details
Total operating expenses were $157.4 million compared with $209.1 in the prior-year quarter, primarily due to lower depreciation and amortization costs.
Operational EBITDA (OEBITDA) declined 2% year over year to $114 million.
Operating income came in at $43.6 million against an operating loss of $16 million reported in the year-ago quarter.
As of Jun 30, the company had 2,413,000 billable subscribers, up 13% from 2,140,000 at the end of the prior-year quarter. The year-over-year increase was backed by the rapid adoption of Iridium’s services in various sectors.
The commercial sector, in particular, saw significant growth, contributing to 2,271,000 billable subscribers, up from 1,999,000 in the previous quarter. Notably, IoT data subscribers represented 81% of billable commercial subscribers at the end of the quarter.
As of Jun 30, total cash, cash equivalents and marketable securities were $63.5 million, with $1.6 billion of net debt. Capital expenditures were $12.4 million in the quarter under review.
Iridium maintained a strong capital position, repurchasing nearly 3.3 million shares of common stock for $96.6 million during the quarter. Additionally, it increased its quarterly dividend to 14 cents per share, resulting in year-to-date dividend payments of $32.8 million.
2024 Guidance Reiterated
For 2024, management expects total Service revenue growth between 4% and 6%. OEBITDA is projected to be in the range of $460-$470 million.
The company expects cash taxes to remain below $10 million annually through 2026. It aims to reduce net leverage below 4.0 times OEBITDA through 2026 and eventually below 2.0 times by the end of the decade.
Zacks Rank
Iridium currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
BlackBerry’s (BB - Free Report) reported first-quarter fiscal 2025 adjusted adjusted loss per share of 3 cents, narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 47.9% in the past year.
Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 25% in the past year.
SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 62.2%.