Iridium Communications Inc (NASDAQ:IRDM) reported mixed second-quarter results, with revenue slightly exceeding expectations but earnings per share (EPS) falling short of analyst estimates. The market reaction has been negative, with shares dropping nearly 6% in pre-market trading.
Key Financial Highlights
- Revenue: $216.9 million, up 7.9% year-over-year, narrowly beating the consensus estimate of $218.4 million.
- EPS: $0.20 per diluted share, down from $0.27 in Q2 2024 and below the $0.246 analyst forecast.
- Operational EBITDA (OEBITDA): $121.3 million, a 6% increase from $114.0 million in the prior-year period.
The decline in net income was primarily attributed to a one-time $19.8 million gain from the acquisition of Satelles, Inc. in Q2 2024, which did not recur this year. Excluding this non-recurring item, underlying profitability showed modest improvement.
Market Reaction & Performance
Despite the revenue beat, the EPS miss appears to have driven investor disappointment. The stock’s pre-market drop of nearly 6% contrasts with its recent performance, which had been positive—up 12% over the past month and relatively flat over the past two weeks.
Forward-Looking Estimates
Analysts project:
- Q3 2025 Revenue: $228.5 million
- Full-Year 2025 Revenue: $893.4 million
- Full-Year 2025 EPS: $1.10
The company did not provide explicit guidance in its press release, making it difficult to assess whether management’s expectations align with Wall Street’s forecasts.
Press Release Summary
- Iridium emphasized growth in operational EBITDA, reflecting improved efficiency.
- The absence of last year’s one-time acquisition gain contributed to lower net income.
- No major updates on future guidance were provided, leaving investors to rely on existing analyst estimates.
For a deeper dive into earnings trends and future estimates, see Iridium’s earnings and estimates page.
Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.
