Iridium Communications Crushes Earnings Estimates
Iridium Communications (NAS: IRDM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Iridium Communications beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share dropped.
Margins dropped across the board.
Iridium Communications logged revenue of $95 million. The five analysts polled by S&P Capital IQ looked for a top line of $93.2 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $87.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.11. The five earnings estimates compiled by S&P Capital IQ predicted $0.08 per share on the same basis. GAAP EPS of $0.12 for Q4 were 14% lower than the prior-year quarter's $0.14 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 66.4%, 220 basis points worse than the prior-year quarter. Operating margin was 16.6%, 50 basis points worse than the prior-year quarter. Net margin was 8.8%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $97.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $412.7 million. The average EPS estimate is $0.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 195 members rating the stock outperform and six members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Iridium Communications a green thumbs-up, and two 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 $12.25.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Iridium Communications fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Iridium Communications to My Watchlist.
At the time this article was published 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
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.