Iridium Communications (NASDAQ:IRDM) Posts Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• Iridium Communications reported quarterly EPS of $0.09, which missed analyst expectations of $0.26 by $0.17.
• The company delivered revenue of $225.24 million, topping the consensus estimate of $220.32 million for the quarter.
• Iridium also announced a quarterly dividend of $0.15 per share, equal to an annualized yield of about 1.3%.

Iridium Communications (NASDAQ:IRDM - Get Free Report) issued its quarterly earnings results on Wednesday. The technology company reported $0.09 earnings per share for the quarter, missing the consensus estimate of $0.26 by ($0.17), FiscalAI reports. The business had revenue of $225.24 million for the quarter, compared to the consensus estimate of $220.32 million. Iridium Communications had a return on equity of 22.76% and a net margin of 12.05%.

Iridium Communications Price Performance

Shares of NASDAQ IRDM opened at $47.24 on Wednesday. The business's 50 day moving average price is $47.77 and its two-hundred day moving average price is $34.37. The company has a market cap of $4.99 billion, a PE ratio of 47.72, a price-to-earnings-growth ratio of 2.84 and a beta of 0.87. The company has a quick ratio of 2.21, a current ratio of 2.85 and a debt-to-equity ratio of 3.74. Iridium Communications has a twelve month low of $15.65 and a twelve month high of $57.18.

Iridium Communications Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date of this dividend was Monday, June 15th. Iridium Communications's payout ratio is 60.61%.

Analysts Set New Price Targets

Several research analysts recently commented on IRDM shares. New Street Research initiated coverage on shares of Iridium Communications in a report on Thursday, May 14th. They set a "neutral" rating and a $40.00 target price for the company. BWS Financial reiterated a "sell" rating and issued a $16.00 price target on shares of Iridium Communications in a research note on Monday, April 27th. William Blair cut shares of Iridium Communications from an "outperform" rating to a "hold" rating in a research report on Monday, June 29th. Morgan Stanley increased 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. Finally, Raymond James Financial reaffirmed a "market perform" rating on shares of Iridium Communications in a research report on Friday, April 24th. Two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Iridium Communications presently has an average rating of "Hold" and an average target price of $38.67.

Institutional Trading of Iridium Communications

A number of hedge funds have recently made changes to their positions in IRDM. Royal Bank of Canada raised its stake in Iridium Communications by 33.0% in the 1st quarter. Royal Bank of Canada now owns 48,325 shares of the technology company's stock valued at $1,320,000 after acquiring an additional 11,985 shares during the period. Amundi boosted its position in Iridium Communications by 1,243.0% during 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 period. Goldman Sachs Group Inc. boosted its position in Iridium Communications by 16.7% during the first quarter. Goldman Sachs Group Inc. now owns 232,231 shares of the technology company's stock worth $6,345,000 after purchasing an additional 33,191 shares during the period. United Services Automobile Association acquired a new position in shares of Iridium Communications in the first quarter valued at $218,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of 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 valued at $14,741,000 after purchasing an additional 75,060 shares during the last quarter. 84.36% of the stock is owned by institutional investors and hedge funds.

About Iridium Communications

Iridium Communications Inc operates a global satellite communications network that delivers voice and data services across land, sea and air. The company's unique architecture relies on a constellation of 66 low-Earth orbit satellites, enabling real-time connectivity in regions beyond the reach of terrestrial wireless networks. Iridium's core offerings include satellite voice and messaging services, broadband data terminals, push-to-talk (PTT) interoperability and machine-to-machine (M2M) solutions for the Internet of Things (IoT).

Iridium serves a diverse range of markets, including maritime shipping, aviation, government and defense, energy, and enterprise.

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