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 Introduces NTN Direct Service: Will the Stock Benefit?
Read MoreHide Full Article
Iridium Communications (IRDM - Free Report) recently announced that the 3rd Generation Partnership Project (3GPP) has approved its request to broaden the capability of Narrowband Internet of Things (NB-IoT) for Non-Terrestrial Networks (NTN) into the official Work Plan for 3GPP Release 19 (set to conclude in the fourth quarter of 2025). This will result in Iridium's satellite service being accessed through the industry standard chipsets. The initiative augments Iridium’s footprint in global connectivity through its latest service, Iridium NTN Direct, which is expected to be the world's first global 5G NB-IoT service.
Iridium NTN Direct was conceived from the company’s innovative Project Stardust, launched in January 2024. Including the 3GPP standards work is a major step toward ensuring that Iridium’s service can be accessed through industry-standard chipsets, further unlocking new opportunities for global connectivity. Project Stardust aims to enable NB-IoT communication through Iridium's operational low Earth orbit (LEO) satellite constellation.
Per the company, the development of Iridium’s system is progressing at an impressive pace. It has already achieved technical milestones, including a successful demonstration in a lab environment, and is planning additional trials and demonstrations in early 2025. IRDM attributed the rapid development to the flexible nature of its cloud-based, software-defined satellites, which enabled it to build on recognized industry standards.
IRDM’s NTN Direct Service to Enhance IoT Innovation
The launch of Iridium NTN Direct will equip smartphone manufacturers, OEMs, chipmakers, mobile network operators and IoT developers using a 3GPP standards-driven solution with access to Iridium’s existing satellite network and its globally coordinated L-band spectrum. This will provide users with a global, low-latency LEO experience, enabling consistent connectivity even in remote locations.
Certified by international regulatory bodies to provide safety of life services, the Iridium constellation continues to be the exclusive satellite network offering coverage everywhere on Earth. Operating in LEO, its constellation delivers lower latency and more reliable service compared to geostationary satellite networks. Geostationary systems often require more power and are susceptible to regional outages if a single satellite fails. In contrast, Iridium’s crosslinked LEO architecture ensures continuous coverage and connectivity across the entire globe, making it ideal for critical communications and IoT applications.
Will Innovations in the Satellite Space Aid IRDM’s Top Line?
Iridium is likely to register healthy top-line growth and a boost in stock price due to its unique product portfolio that witnesses healthy adoption among diverse sectors. In September 2024, it introduced Iridium Certus GMDSS, making significant strides in maritime safety, compliance and communication. These terminals form a significant part of any ship's hybrid network system with improved cost structure, efficiency and performance in maritime safety and security.
Iridium has further strengthened its position in the satellite technology space by acquiring Satelles, Inc., which is a leading provider of secure satellite-based time and location (STL) services. In June 2024, Iridium announced an expansion of its STL service to address the growing commercial demand in Europe and the Asia Pacific. The service is likely to enhance the reliability and resiliency of GNSS systems, including GPS and Galileo, from the risks of spoofing and jamming.
Also, strength in the commercial sector with increasing subscriber engagement is cushioning its top line. In the last reported quarter, IRDM’s revenues grew 4% year over year to $201.1 million, driven by healthy growth trends across the Commercial service segment and Engineering and support service business.
IRDM’s Zacks Rank & Stock Price Performance
At present, IRDM carries a Zacks Rank #2 (Buy). Shares have lost 35.3% compared with the sub-industry's decline of 4.9% in the past year.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, ANET delivered an earnings surprise of 8.25%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Iridium Introduces NTN Direct Service: Will the Stock Benefit?
Iridium Communications (IRDM - Free Report) recently announced that the 3rd Generation Partnership Project (3GPP) has approved its request to broaden the capability of Narrowband Internet of Things (NB-IoT) for Non-Terrestrial Networks (NTN) into the official Work Plan for 3GPP Release 19 (set to conclude in the fourth quarter of 2025). This will result in Iridium's satellite service being accessed through the industry standard chipsets. The initiative augments Iridium’s footprint in global connectivity through its latest service, Iridium NTN Direct, which is expected to be the world's first global 5G NB-IoT service.
Iridium NTN Direct was conceived from the company’s innovative Project Stardust, launched in January 2024. Including the 3GPP standards work is a major step toward ensuring that Iridium’s service can be accessed through industry-standard chipsets, further unlocking new opportunities for global connectivity. Project Stardust aims to enable NB-IoT communication through Iridium's operational low Earth orbit (LEO) satellite constellation.
Per the company, the development of Iridium’s system is progressing at an impressive pace. It has already achieved technical milestones, including a successful demonstration in a lab environment, and is planning additional trials and demonstrations in early 2025. IRDM attributed the rapid development to the flexible nature of its cloud-based, software-defined satellites, which enabled it to build on recognized industry standards.
IRDM’s NTN Direct Service to Enhance IoT Innovation
The launch of Iridium NTN Direct will equip smartphone manufacturers, OEMs, chipmakers, mobile network operators and IoT developers using a 3GPP standards-driven solution with access to Iridium’s existing satellite network and its globally coordinated L-band spectrum. This will provide users with a global, low-latency LEO experience, enabling consistent connectivity even in remote locations.
Certified by international regulatory bodies to provide safety of life services, the Iridium constellation continues to be the exclusive satellite network offering coverage everywhere on Earth. Operating in LEO, its constellation delivers lower latency and more reliable service compared to geostationary satellite networks. Geostationary systems often require more power and are susceptible to regional outages if a single satellite fails. In contrast, Iridium’s crosslinked LEO architecture ensures continuous coverage and connectivity across the entire globe, making it ideal for critical communications and IoT applications.
Will Innovations in the Satellite Space Aid IRDM’s Top Line?
Iridium is likely to register healthy top-line growth and a boost in stock price due to its unique product portfolio that witnesses healthy adoption among diverse sectors. In September 2024, it introduced Iridium Certus GMDSS, making significant strides in maritime safety, compliance and communication. These terminals form a significant part of any ship's hybrid network system with improved cost structure, efficiency and performance in maritime safety and security.
Iridium has further strengthened its position in the satellite technology space by acquiring Satelles, Inc., which is a leading provider of secure satellite-based time and location (STL) services. In June 2024, Iridium announced an expansion of its STL service to address the growing commercial demand in Europe and the Asia Pacific. The service is likely to enhance the reliability and resiliency of GNSS systems, including GPS and Galileo, from the risks of spoofing and jamming.
Also, strength in the commercial sector with increasing subscriber engagement is cushioning its top line. In the last reported quarter, IRDM’s revenues grew 4% year over year to $201.1 million, driven by healthy growth trends across the Commercial service segment and Engineering and support service business.
IRDM’s Zacks Rank & Stock Price Performance
At present, IRDM carries a Zacks Rank #2 (Buy). Shares have lost 35.3% compared with the sub-industry's decline of 4.9% in the past year.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Harmonic Inc. (HLIT - Free Report) , Arista Networks, Inc. (ANET - Free Report) and Ubiquiti Inc. (UI - Free Report) . HLIT and UI presently sport a Zacks Rank #1 (Strong Buy), whereas ANET carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, ANET delivered an earnings surprise of 8.25%.