The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Iridium Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins expanded across the board.
Iridium Communications reported revenue of $92.3 million. The six analysts polled by S&P Capital IQ predicted revenue of $98.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.19. The five earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. Non-GAAP EPS of $0.19 for Q4 were 73% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.22 for Q4 were 100% 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 72.5%, 610 basis points better than the prior-year quarter. Operating margin was 33.6%, much better than the prior-year quarter. Net margin was 18.1%, 920 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.7 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $415.3 million. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 209 members out of 216 rating the stock outperform, and seven members rating it underperform. Among 61 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 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 outperform, with an average price target of $9.38.
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