Stock Monitor: Cogent Communications Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 22, 2018 / If you want access to our free earnings report on Iridium Communications Inc. (NASDAQ: IRDM) ("Iridium"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=IRDM. The Company reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The satellite phone Company outperformed top- and bottom-line expectations. Additionally, the Company provided guidance for the full year FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Iridium reported total revenues of $119.1 million, up 14% compared to $104.4 million in Q1 2017, and ahead of analysts' estimates of $111 million. Iridium's revenues for the reported quarter consisted of service revenues of $89.7 million, and revenues related to equipment sales and engineering and support projects of $29.4 million. The Company's service revenues, which represents primarily recurring revenues from Iridium's growing subscriber base, was 75% of total revenues for Q1 2018.
Iridium ended Q1 2018 with 996,000 total billable subscribers compared to 869,000 in Q1 2017, and was up from 969,000 from the quarter ended December 31, 2017. The Company's total billable subscribers grew 15% on a y-o-y basis, driven by a growth in commercial Internet of Things (IoT) and government customers.
Iridium's net income was $11.5 million, or $0.07 per diluted share, in Q1 2018 compared to $37.9 million, or $0.30 per diluted share, in Q1 2017. The decrease in net income was primarily the result of an increase in depreciation and amortization expenses of $25.0 million on a y-o-y basis, and the recognition of a gain of $14.2 million in the prior year's same period triggered by the Company's insourcing transaction with Boeing. Iridium's earnings beat Wall Street's estimates of $0.04 per share.
Iridium's operational earnings before interest, tax, depreciation, and amortization (OEBITDA) were $68.5 million in Q1 2018 compared to $64.3 million in Q1 2017, representing an increase of 6% y-o-y and an OEBITDA margin of 57%. The Company's OEBITDA benefitted from higher equipment sales and a continued growth in the Company's IoT data business.
Service – Commercial
Commercial service remained the largest part of Iridium's business, representing 57% of the Company's total revenues during Q1 2018. For Q1 2018, Iridium's Commercial service revenues were $67.7 million, up 13% on a y-o-y basis.
Commercial voice and data subscribers increased 1% to 354,000 customers from the year-ago corresponding period. Commercial voice and data average revenue per user (ARPU) increased 5% to $41 on a y-o-y basis. Commercial IoT data subscribers grew 25% to 538,000 customers from Q1 2017 and Commercial IoT data ARPU remained unchanged at $13 on a y-o-y basis.
Iridium's Commercial business ended Q1 2018 with 892,000 billable subscribers compared to 783,000 in Q1 2017, and up from 869,000 for the quarter ended December 31, 2017. IoT data subscribers represented 60% of billable commercial subscribers at the end of the reported quarter, reflecting an increase from 55% at the end of the prior year's comparable period.
Service – Government
Iridium's Government service revenues were $22 million, consistent with the prior year's same period. Iridium's Government business ended Q1 2018 with 104,000 subscribers compared to 86,000 for Q1 2017, and up from 100,000 for the quarter ended December 31, 2017. Government voice and data subscribers increased 18% to 53,000 as of March 31, 2018. IoT data subscribers increased 24% y-o-y and represented 49% of government subscribers, an increase from 48% at the end of Q1 2017.
For Q1 2018, Iridium's Engineering and Support revenues were $3.6 million versus $5.5 million in the prior year's comparable quarter, primarily due to the episodic nature of government-sponsored projects.
Iridium's capital expenditure was $83.0 million in Q1 2018, primarily related to spending for the Company's next-generation satellite constellation, Iridium NEXT. The Company ended the reported quarter with a credit facility gross debt of $1.8 billion and a cash and marketable securities balance of $450.7 million.
Iridium re-affirmed its full-year FY18 outlook for total service revenue growth and OEBITDA. The Company is expecting total service revenue growth of between 10% and 12%, and OEBITDA between $280 million and $290 million for FY18.
For the full year FY19, Iridium is projecting total service revenues of approximately $440 million and an OEBITDA margin of approximately 60%. The Company is expecting negligible cash taxes through approximately 2020. Moreover, Iridium is estimating peak net leverage of 6.0x to 6.5x OEBITDA in 2018, and net leverage of approximately 4.5x OEBITDA in 2019.
Stock Performance Snapshot
May 21, 2018 - At Monday's closing bell, Iridium Communications' stock rose 1.30%, ending the trading session at $11.70.
Volume traded for the day: 732.44 thousand shares.
Stock performance in the previous six-month period – up 3.54%; and past twelve-month period – up 17.59%
After yesterday's close, Iridium Communications' market cap was at $1.31 billion.
Price to Earnings (P/E) ratio was at 31.37.
The stock is part of the Technology sector, categorized under the Diversified Communication Services industry. This sector was up 0.7% at the end of the session.
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