The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Iridium Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share increased significantly.
Margins grew across the board.
Iridium Communications logged revenue of $100.4 million. The seven analysts polled by S&P Capital IQ expected sales of $104.4 million on the same basis. GAAP reported sales were 1.6% lower than the prior-year quarter's $102.1 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 predicted $0.25 per share. GAAP EPS of $0.24 for Q3 were 60% higher than the prior-year quarter's $0.15 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 71.9%, 280 basis points better than the prior-year quarter. Operating margin was 31.5%, 780 basis points better than the prior-year quarter. Net margin was 17.8%, 670 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $99.9 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $394.3 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 187 members out of 195 rating the stock outperform, and eight members rating it underperform. Among 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $10.50.
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