The 10-second takeaway
For the quarter ended March 31 (Q1), Iridium Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share expanded.
Margins grew across the board.
Iridium Communications booked revenue of $89.2 million. The seven analysts polled by S&P Capital IQ looked for revenue of $97.3 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 $0.17. The six earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.17 for Q1 were 6.3% 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 71.3%, 480 basis points better than the prior-year quarter. Operating margin was 28.4%, much better than the prior-year quarter. Net margin was 16.7%, 340 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $101.1 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $401.5 million. The average EPS estimate is $0.92.
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 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 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 $9.50.
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