Iridium Communications surges on strong Q4 earnings beat

Published 13/02/2025, 13:54
Iridium Communications surges on strong Q4 earnings beat

Investing.com - Iridium Communications (NASDAQ:IRDM) Inc saw its stock surge 7.25% after reporting fourth-quarter earnings that significantly exceeded analyst expectations.

The satellite communications company posted adjusted earnings per share of $0.32, beating the consensus estimate of $0.16 by $0.16.

Revenue for the quarter came in at $213 million, surpassing the analyst forecast of $203.67 million and representing a 9% increase from the same period last year. The company’s total service revenue, which accounts for 72% of total revenue, grew 4% YoY to $154 million.

Iridium’s commercial IoT data revenue was a bright spot, increasing 15% YoY to $41.4 million. The company’s IoT subscriber base expanded 10% from the year-ago period to 1,887,000 customers, driven by growth in consumer personal communications devices.

"Turning our eyes to 2025, Iridium will return to a more normalized OEBITDA growth profile," said Matt Desch, CEO of Iridium. He added, "Our continued strong cash flow supported return of capital to shareholders approaching a half billion dollars in 2024, including dividends and share repurchases."

Looking ahead, Iridium provided guidance for 2025, projecting total service revenue growth between 5% and 7%.

The company expects full-year 2025 operational EBITDA to be between $490 million and $500 million, compared to $470.6 million in 2024.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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