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What: Shares of Iridium Communications (NAS: IRDM) plunged today by as much as 11%, after the company reported earnings.
So what: Third-quarter revenue added up to $100.4 million, a little shy of analysts' best guesses. Net income was $17.8 million, or $0.23 per share, again falling short of the consensus estimate of $0.25 per share. However, Iridium lowered its total billable subscriber growth outlook.
Now what: CEO Matt Desch acknowledged the challenges that Iridium has faced so far in 2012, but is optimistic that growth will reaccelerate in 2013. Iridium affirmed its full-year outlook for total service revenue growth of roughly 6%, but had to cut its total billable subscriber growth estimate from a range of 20% to 25% to a new target of 18%. This was due to some expected machine-to-machine subscriber additions shifting from late 2012 to early 2013. CRT Capital downgraded shares as a result.
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The article Why Iridium Communications Shares Plunged originally appeared on Fool.com.
Evan Niu, CFA, has no positions in the stocks mentioned above. 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.