Iridium Communications Set to Announce Q4 Earnings on February 12
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy IRDM?
Source: seekingalpha
- Earnings Announcement Schedule: Iridium Communications is set to release its Q4 2023 earnings report on February 12 before market open, with consensus EPS estimated at $0.25 and revenue expected to reach $219.14 million, reflecting a 2.9% year-over-year growth.
- Performance Expectation Analysis: Over the past year, Iridium has exceeded EPS estimates 25% of the time and revenue estimates 50% of the time, indicating a degree of stability in its profitability metrics that may attract cautious investors.
- Expectation Revision Status: In the last three months, there have been no upward revisions to EPS estimates, alongside one downward revision, which may signal market caution regarding the company's future earnings potential and could impact investor sentiment.
- Market Positioning Analysis: Iridium is perceived more as a utility-like investment rather than a growth play in the tech sector, a positioning that may influence its stock price volatility and the long-term strategic choices of investors.
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Analyst Views on IRDM
Wall Street analysts forecast IRDM stock price to rise
7 Analyst Rating
4 Buy
2 Hold
1 Sell
Moderate Buy
Current: 22.390
Low
16.00
Averages
25.83
High
37.00
Current: 22.390
Low
16.00
Averages
25.83
High
37.00
About IRDM
Iridium Communications Inc. operates the mobile voice and data satellite communications network that spans the entire globe. The Company enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, it delivers a portfolio of solutions for markets that require global communications. Its principal vertical lines of business include land mobile, maritime, aviation, IoT, hosted payloads and other data services, which includes navigation and timing (PNT), and the United States government. Its products include Iridium 9555, Iridium Extreme satellite phones, Iridium Extreme PTT, Iridium GO! Iridium GO!, and others. It provides voice and data communications services to businesses, the United States and foreign governments, non-governmental organizations, and consumers via its satellite network, which has an architecture of 66 operational satellites with in-orbit spares and related ground infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Free Cash Flow: The company reported nearly $300 million in free cash flow for 2025, with projections of $318 million for 2026, indicating a solid capacity for capital returns and investment in new services.
- Strategic Investment Focus: CEO highlighted ongoing investments in four key growth areas, including narrowband IoT and national security, expecting to create over $200 million in revenue opportunities by 2030, showcasing confidence in future growth.
- Product Launch Plans: Iridium plans to introduce several new products, including maritime Iridium Certus GMDSS terminals and Iridium NTN Direct for global narrowband IoT, further solidifying its leadership position in the market.
See More
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- Stock Price Surge: Following the positive earnings report, HubSpot's shares jumped 9.4% to $228.93 on Thursday, reflecting investor optimism about the company's growth potential and likely attracting more investor interest.
- Mixed Market Performance: While U.S. stocks showed mixed results overall, HubSpot's strong performance distinguished it among many stocks, demonstrating relative resilience and appeal in a fluctuating market.
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- Net Income Performance: The company reported a net income of $114.4 million for 2025, with earnings per share increasing by 13% to $1.06, primarily driven by a reduced share count and a one-time gain of $19.8 million from the acquisition of Satelles, Inc. in 2024, boosting investor confidence.
- Subscriber Growth: As of Q4 2025, Iridium's total billable subscribers reached 2.537 million, a 3% increase year-over-year, demonstrating the company's expansion in the commercial IoT market and solidifying its customer base.
- Capital Expenditure and Debt Management: Capital expenditures for 2025 totaled $100.3 million, with net debt at $1.7 billion, reflecting effective financial leverage management while maintaining a net leverage ratio of 3.4 times, ensuring future investment capacity.
See More
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- Revenue Performance: Iridium Communications reported total revenue of $212.9 million for Q4 2025, flat year-over-year but missing expectations by $6.24 million, indicating that growth in service revenue was insufficient to offset declines in equipment sales and engineering support projects.
- Service Revenue Growth: Service revenue accounted for 75% of total revenue, reaching $158.9 million, demonstrating stability driven by growth in the commercial IoT sector, despite overall revenue stagnation, highlighting the company's ongoing market appeal.
- User Growth: The total number of billable subscribers reached 2.537 million by the end of Q4 2025, reflecting a 3% year-over-year increase, although slightly down from 2.542 million in the previous quarter, indicating positive progress in attracting new users.
- Future Outlook: The company projects service revenue growth to remain flat to 2% for 2026 and plans to shift incentive compensation entirely to cash, which is expected to negatively impact OEBITDA by $17 million, leading to an anticipated OEBITDA range of $480 million to $490 million, reflecting a new financial management strategy.
See More
