Compared to Estimates, Iridium (IRDM) Q3 Earnings: A Look at Key Metrics
Iridium Communications (IRDM) reported $197.6 million in revenue for the quarter ended September 2023, representing a year-over-year increase of 7.4%. EPS of -$0.01 for the same period compares to $0.02 a year ago.
The reported revenue represents a surprise of -1.10% over the Zacks Consensus Estimate of $199.81 million. With the consensus EPS estimate being $0.03, the EPS surprise was -133.33%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Iridium performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
ARPU - Commercial - Voice and data: $46 compared to the $46.21 average estimate based on three analysts.
ARPU - Commercial - IoT data: $7.90 versus the three-analyst average estimate of $7.61.
ARPU - Commercial - Broadband: $322 versus $313.05 estimated by three analysts on average.
Total Net billable Subscriber Additions: 95 thousand versus the three-analyst average estimate of 113.13 thousand.
Revenue- Subscriber equipment: $20.42 million versus the five-analyst average estimate of $29.37 million. The reported number represents a year-over-year change of -27%.
Revenue- Service: $151.95 million versus $151.50 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
Revenue- Engineering and support service: $25.23 million versus the five-analyst average estimate of $18.26 million. The reported number represents a year-over-year change of +47.3%.
Service Revenue- Commercial: $125.45 million versus the four-analyst average estimate of $124.57 million. The reported number represents a year-over-year change of +11.5%.
Service Revenue- Government: $26.50 million versus the four-analyst average estimate of $26.51 million. The reported number represents a year-over-year change of 0%.
Service revenue- Commercial service revenue- Hosted payload and other data service: $15.02 million versus $15.47 million estimated by three analysts on average.
Revenue- Engineering and support service- Government: $23.35 million versus $17.07 million estimated by two analysts on average.
Revenue- Engineering and support service- Commercial: $1.88 million compared to the $2 million average estimate based on two analysts.
View all Key Company Metrics for Iridium here>>>
Shares of Iridium have returned -10.1% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
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