Iridium Communications (NASDAQ:IRDM) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Iridium Communications reported earnings of $0.20 per share, missing analysts' estimates of $0.23 by $0.03, but achieved a revenue of $216.91 million, surpassing predictions of $214.73 million.
• The company announced an increase in its quarterly dividend from $0.14 to $0.15 per share, with a dividend yield of 2.34% and a payout ratio of 52.83%.
• Shares of IRDM have seen a price increase during trading, reaching $25.69, while analysts hold a consensus rating of "Moderate Buy" with a target price of $35.20.

Iridium Communications (NASDAQ:IRDM - Get Free Report) released its earnings results on Thursday. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.23 by ($0.03), Zacks reports. The company had revenue of $216.91 million during the quarter, compared to analyst estimates of $214.73 million. Iridium Communications had a net margin of 13.20% and a return on equity of 20.28%. Iridium Communications's revenue was up 7.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.27 EPS.

Iridium Communications Stock Performance

Shares of Iridium Communications stock traded down $0.01 during mid-day trading on Monday, hitting $25.70. 777,451 shares of the stock were exchanged, compared to its average volume of 1,373,457. Iridium Communications has a 12 month low of $19.91 and a 12 month high of $35.85. The company has a 50-day simple moving average of $28.85 and a 200 day simple moving average of $27.95. The company has a debt-to-equity ratio of 3.82, a quick ratio of 1.75 and a current ratio of 2.51. The company has a market capitalization of $2.78 billion, a P/E ratio of 25.94, a P/E/G ratio of 0.86 and a beta of 0.79.

Iridium Communications Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a $0.15 dividend. This is a boost from Iridium Communications's previous quarterly dividend of $0.14. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.60 annualized dividend and a yield of 2.34%. Iridium Communications's dividend payout ratio (DPR) is presently 60.61%.

Institutional Investors Weigh In On Iridium Communications

Hedge funds have recently modified their holdings of the stock. Jane Street Group LLC grew its position in Iridium Communications by 64.9% in the first quarter. Jane Street Group LLC now owns 239,354 shares of the technology company's stock worth $6,539,000 after acquiring an additional 94,173 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Iridium Communications by 16.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 539,566 shares of the technology company's stock worth $14,741,000 after acquiring an additional 75,060 shares in the last quarter. United Services Automobile Association purchased a new position in Iridium Communications in the first quarter worth $218,000. Goldman Sachs Group Inc. grew its position in Iridium Communications by 16.7% in the first quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company's stock worth $6,345,000 after acquiring an additional 33,191 shares in the last quarter. Finally, Amundi lifted its stake in Iridium Communications by 1,243.0% in the first quarter. Amundi now owns 40,479 shares of the technology company's stock worth $1,035,000 after purchasing an additional 37,465 shares during the last quarter. Institutional investors own 84.36% of the company's stock.

Analysts Set New Price Targets

IRDM has been the topic of a number of recent analyst reports. William Blair raised Iridium Communications from a "market perform" rating to an "outperform" rating in a research report on Tuesday, April 22nd. Barclays decreased their target price on Iridium Communications from $38.00 to $31.00 and set an "overweight" rating on the stock in a research report on Monday. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $39.00 target price (down previously from $47.00) on shares of Iridium Communications in a research report on Friday. BWS Financial decreased their target price on Iridium Communications from $30.00 to $25.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 23rd. Finally, Oppenheimer assumed coverage on Iridium Communications in a research report on Monday, May 5th. They issued an "outperform" rating and a $34.00 target price on the stock. Two investment analysts have rated the stock with a hold rating, four have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $33.80.

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.