Iridium Communications (NASDAQ:IRDM) Announces Quarterly Earnings Results

Key Points

• Iridium Communications beat quarterly expectations: EPS was $0.98 versus the $0.34 consensus estimate, while revenue reached $245.73 million compared with expectations of $236.30 million.
• The company declared a quarterly dividend of $0.15, equivalent to an annualized $0.60 payout and a 1.4% yield; its payout ratio is 68.18%.
• Analyst sentiment remains mixed: the stock carries an overall “Hold” rating with an average price target of $41.20, while insiders sold 381,688 shares worth approximately $19.1 million during the latest quarter.

Iridium Communications (NASDAQ:IRDM - Get Free Report) issued its quarterly earnings data on Tuesday. The technology company reported $0.98 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.64, FiscalAI reports. Iridium Communications had a return on equity of 22.57% and a net margin of 10.55%. The company had revenue of $245.73 million during the quarter, compared to analysts' expectations of $236.30 million.

Iridium Communications Trading Up 1.0%

Shares of IRDM opened at $44.18 on Tuesday. The stock has a fifty day moving average price of $47.67 and a two-hundred day moving average price of $45.75. The company has a debt-to-equity ratio of 3.70, a quick ratio of 2.31 and a current ratio of 2.78. Iridium Communications has a 52-week low of $15.65 and a 52-week high of $57.18. The company has a market cap of $4.68 billion, a price-to-earnings ratio of 50.21, a PEG ratio of 3.53 and a beta of 0.84.

Iridium Communications Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were given a $0.15 dividend. The ex-dividend date was Tuesday, September 15th. This represents a $0.60 annualized dividend and a yield of 1.4%. Iridium Communications's payout ratio is presently 68.18%.

Insider Buying and Selling

In related news, CAO Timothy Kapalka sold 13,473 shares of Iridium Communications stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $50.51, for a total value of $680,521.23. Following the completion of the sale, the chief accounting officer directly owned 35,731 shares in the company, valued at $1,804,772.81. This trade represents a 27.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Suzanne Mcbride sold 85,454 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $50.28, for a total transaction of $4,296,627.12. Following the completion of the transaction, the insider directly owned 282,017 shares in the company, valued at approximately $14,179,814.76. The trade was a 23.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 381,688 shares of company stock valued at $19,146,390. Insiders own 2.70% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on IRDM. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Iridium Communications in a report on Tuesday, October 6th. New Street Research raised shares of Iridium Communications from a "neutral" rating to a "buy" rating in a report on Wednesday, July 22nd. William Blair lowered shares of Iridium Communications from an "outperform" rating to a "hold" rating in a research report on Monday, June 29th. Finally, Morgan Stanley upped their price objective on shares of Iridium Communications from $26.00 to $54.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 30th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $41.20.

About Iridium Communications

Iridium Communications Inc provides global satellite communications services through the Iridium satellite network. The company offers voice and data connectivity for customers in remote and difficult-to-reach locations, supporting applications in maritime, aviation, government, emergency services, transportation, industrial, and recreational markets.

Its product portfolio includes satellite phones, broadband services, specialized voice and data terminals, and Internet of Things connectivity for tracking, monitoring, and machine-to-machine communications.

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