The 10-second takeaway
For the quarter ended June 30 (Q2), Iridium Communications missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
Iridium Communications booked revenue of $97.3 million. The seven analysts polled by S&P Capital IQ foresaw revenue of $101.3 million on the same basis. GAAP reported sales were 1.5% higher than the prior-year quarter's $95.9 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 $0.23. The seven earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.24 for Q2 were 50% higher than the prior-year quarter's $0.16 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 69.9%, 310 basis points better than the prior-year quarter. Operating margin was 29.1%, 750 basis points better than the prior-year quarter. Net margin was 18.1%, 590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $106.6 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $403.1 million. The average EPS estimate is $0.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 182 members out of 190 rating the stock outperform, and eight members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 45 give Iridium Communications a green thumbs-up, and three 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 $12.00.
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