BWS Financial Has Bearish Forecast for IRDM FY2025 Earnings

Key Points

• BWS Financial has lowered its FY2025 earnings estimate for Iridium Communications to $1.03 per share, down from a previous estimate of $1.08, while maintaining a "Neutral" rating.
• Iridium Communications recently missed the consensus EPS estimate for Q2, reporting $0.20 compared to the expected $0.23, despite generating revenue of $216.91 million, surpassing estimates of $214.73 million.
• The company declared a quarterly dividend increase to $0.15, with a dividend yield of 2.41%, reflecting a commitment to returning value to shareholders.

Iridium Communications Inc (NASDAQ:IRDM - Free Report) - Research analysts at BWS Financial reduced their FY2025 earnings per share (EPS) estimates for shares of Iridium Communications in a report released on Monday, July 28th. BWS Financial analyst H. Khorsand now expects that the technology company will post earnings of $1.03 per share for the year, down from their previous estimate of $1.08. BWS Financial has a "Neutral" rating and a $25.00 price objective on the stock. The consensus estimate for Iridium Communications' current full-year earnings is $0.89 per share. BWS Financial also issued estimates for Iridium Communications' Q4 2025 earnings at $0.24 EPS.

Iridium Communications (NASDAQ:IRDM - Get Free Report) last issued its earnings results on Thursday, July 24th. The technology company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.03). The company had revenue of $216.91 million for the quarter, compared to analysts' expectations of $214.73 million. Iridium Communications had a return on equity of 20.28% and a net margin of 13.20%. Iridium Communications's revenue for the quarter was up 7.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.27 earnings per share.

Several other research firms have also weighed in on IRDM. Morgan Stanley lowered their target price on Iridium Communications from $40.00 to $37.00 and set an "overweight" rating on the stock in a report on Friday. Barclays cut their target price on shares of Iridium Communications from $38.00 to $31.00 and set an "overweight" rating for the company in a research note on Monday, July 28th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $39.00 price target (down from $47.00) on shares of Iridium Communications in a research note on Friday, July 25th. Oppenheimer initiated coverage on shares of Iridium Communications in a research report on Monday, May 5th. They issued an "outperform" rating and a $34.00 price objective for the company. Finally, Wall Street Zen lowered shares of Iridium Communications from a "buy" rating to a "hold" rating in a research report on Thursday, May 1st. Two equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $34.33.

Iridium Communications Price Performance

Shares of NASDAQ:IRDM traded down $0.28 during trading on Thursday, hitting $24.18. 1,576,310 shares of the stock were exchanged, compared to its average volume of 1,983,965. The company has a market cap of $2.57 billion, a PE ratio of 24.42, a P/E/G ratio of 0.90 and a beta of 0.76. The company has a current ratio of 2.51, a quick ratio of 1.75 and a debt-to-equity ratio of 3.82. The company has a fifty day moving average price of $28.78 and a two-hundred day moving average price of $27.85. Iridium Communications has a 12-month low of $19.91 and a 12-month high of $35.85.

Institutional Trading of Iridium Communications

Large investors have recently added to or reduced their stakes in the stock. SVB Wealth LLC purchased a new position in Iridium Communications in the 1st quarter worth approximately $30,000. UMB Bank n.a. boosted its position in Iridium Communications by 129.8% in the 1st quarter. UMB Bank n.a. now owns 1,379 shares of the technology company's stock valued at $38,000 after buying an additional 779 shares during the last quarter. Pinnacle Holdings LLC boosted its position in Iridium Communications by 45.4% in the 4th quarter. Pinnacle Holdings LLC now owns 1,528 shares of the technology company's stock valued at $44,000 after buying an additional 477 shares during the last quarter. SBI Securities Co. Ltd. boosted its position in Iridium Communications by 37.2% in the 1st quarter. SBI Securities Co. Ltd. now owns 1,757 shares of the technology company's stock valued at $48,000 after buying an additional 476 shares during the last quarter. Finally, Cooksen Wealth LLC purchased a new position in Iridium Communications in the 1st quarter valued at about $47,000. 84.36% of the stock is currently owned by institutional investors and hedge funds.

Iridium Communications Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.5%. This is a boost from Iridium Communications's previous quarterly dividend of $0.14. Iridium Communications's payout ratio is 56.57%.

About Iridium Communications

Iridium Communications Inc provides mobile voice and data communications services and products to businesses, the United States and international governments, non-governmental organizations, and consumers worldwide. The company offers postpaid mobile voice and data satellite communications; prepaid mobile voice satellite communications; push-to-talk; broadband data; and Internet of Things (IoT) services.