Iridium Communications Earnings: Here’s Why Investors Like These Results

Iridium Communications Inc. (NASDAQ:IRDM) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.5%.

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Iridium Communications Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.25% to $0.17 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 4.58% to $89.19 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Iridium Communications Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company missed the mean analyst estimate of $0.19. It missed the average revenue estimate of $97.63 million.

Quoting Management: “We affirmed our 2013 financial outlook across the board today, while continuing to make strong progress in key strategic areas for our business,” said Matt Desch, CEO, Iridium. “Our satellite network continues to perform well, and the Iridium NEXT build remains on budget and on schedule. Our global aviation monitoring venture, Aireon, has also taken a big step forward, recently announcing its first long-term commercial data service contract with NAV CANADA, the world’s largest provider of air traffic services for oceanic flights. This transformational new business is really beginning to take shape, as Iridium is now targeting nearly $500 million in revenue from the Aireon opportunity.”

Key Stats (on next page)…

Revenue decreased 3.35% from $92.28 million in the previous quarter. EPS decreased 10.53% from $0.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.24 to a profit $0.23. For the current year, the average estimate has moved down from a profit of $0.94 to a profit of $0.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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