Iridium Communications Increases Sales but Misses Revenue Estimate

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Iridium Communications (NAS: IRDM) reported earnings on Aug. 2. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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The article Iridium Communications Increases Sales but Misses Revenue Estimate originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Iridium Communications. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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