The 10-second takeaway
For the quarter ended March 31 (Q1), Iridium Communications missed estimates on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue improved slightly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins contracted, net margins expanded.
Iridium Communications chalked up revenue of $93.5 million. The five analysts polled by S&P Capital IQ predicted a top line of $98.4 million on the same basis. GAAP reported sales were 2.4% higher than the prior-year quarter's $91.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.16. The five earnings estimates compiled by S&P Capital IQ forecast $0.15 per share. GAAP EPS of $0.16 for Q1 were 45% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.5%, 70 basis points worse than the prior-year quarter. Operating margin was 15.1%, 280 basis points worse than the prior-year quarter. Net margin was 13.3%, 420 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $101.2 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $408.2 million. The average EPS estimate is $0.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 186 members out of 192 rating the stock outperform, and six members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Iridium Communications a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Iridium Communications is buy, with an average price target of $12.25.
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