Iridium Communications Misses on the Top and Bottom Lines
Iridium Communications (NAS: IRDM) reported earnings on May 2. Here are the numbers you need to know.
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.
Looking for alternatives to Iridium Communications? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Iridium Communications to My Watchlist.
The article Iridium Communications Misses on the Top and Bottom Lines 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.