Iridium Communications Inc IRDM reported a first-quarter 2022 earnings of 2 cents per share, beating the Zacks Consensus Estimate of a loss of 1 cent. The company reported a loss of 4 cents in the prior-year quarter.
Quarterly revenues of $168.2 million, increasing 15% from the year-ago quarter’s levels. The upside can be attributed to strength in subscriber equipment sales and higher service revenues. The top line surpassed the consensus mark by 7.6%.
Total service revenues rose 9% year over year to $126.1 million. The upside can be attributed to strong revenues from a growing subscriber base. Service revenues contributed 75% to total revenues in the first quarter. Solid performance in broadband, commercial voice and data and IoT also played a contributing role.
Subscriber equipment revenues rose 41% year over year to $33.7 million due to its higher demand. Engineering and support service revenues, up 30% to $8.4 million from the prior-year quarter’s levels, mainly due to the increases in commercial activity and the episodic nature of contract work with the U.S. government.
In response to the results, shares of the company are down 1.9% in the premarket trading on Apr 20. In the past year, shares have gained 12% compared with the industry’s decline of 4.6%
Iridium Communications Inc Price, Consensus and EPS Surprise
Iridium Communications Inc price-consensus-eps-surprise-chart | Iridium Communications Inc Quote
Total operating expenses were $149 million, up 8.3% from the prior-year quarter, mainly due to higher cost of subscriber equipment sales, selling, general and administrative and cost of services. Operational EBITDA (OEBITDA) rose 15% year over year to $103.2 million. The upside was mainly driven by higher revenues.
Operating income came in at $19.2 million compared with $9 million reported in the year-ago quarter.
As of Mar 31, 2022, the company had 1,781,000 billable subscribers, up 17% compared with 1,518,000 at the end of the prior-year quarter. The year-over-year increase was backed by growth in commercial voice and data, IoT data and broadband service customers.
As of Mar 31, the company had $232 million in cash and cash equivalents with $1.4 billion of net debt. Capital expenditures were $13.6 million in the quarter under review.
In the quarter under review, the company repurchased 3.8 million shares worth $134.2 million. On Mar 7, 2022, Iridium’s board of directors approved a new share repurchase authorization of an additional $300 million through Dec 31, 2023. As of Mar 31, 2022, the company had $302.5 million under its repurchase authorization.
2022 Guidance Reiterated
Iridium commercial service revenues are expected to benefit from growth in IoT, ongoing activations and solid uptake of the company’s broadband services.
The company expects service revenues to increase between 5% and 7% in 2022. Iridium now expects full-year 2022 OEBITDA between $400 million and $410 million.
Zacks Rank & Stocks to Consider
Iridium currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology sector are Broadcom AVGO, Apple AAPL and Intuit INTU. All stocks carry a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $35.67 per share, up 7.6% in the past 60 days. AVGO’s long-term earnings growth rate is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 1.9%. Shares of AVGO have increased 30% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.16 per share, up 0.2% in the past 60 days. The long-term earnings growth rate is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average being 20.3%. Shares of AAPL have rallied 25.4% in the past year.
The Zacks Consensus Estimate for Intuit fiscal 2022 earnings is pegged at $11.66 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is 15.4%.
Intuit earnings beat the Zacks Consensus Estimate in three of the last four quarters, with the average being 16.7%. Shares of INTU have gained 18.6% in the past year.
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