Iridium Communications Turns To Q3 Profit, Above View; Stock Up In Pre-Market

Iridium Communications

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Kaufen / Verkaufen

(RTTNews) - Iridium Communications Inc. (IRDM), Thursday reported a profit for the third quarter, compared with loss in the year-ago period, primarily due to higher revenue as well as decline in depreciation and amortization expenses. Earnings as well revenue beat analysts' view. The company's shares were trading more than 5 percent up in pre-market.

The satellite communications company posted earnings of $24.45 million or $0.21 per share for the quarter compared with loss of $1.64 million or $0.01 per share in the same quarter a year ago. On average, analysts expected profit of $0.20 per share. Analysts' estimates typically exclude one-time items.

Depreciation and amortization expenses were $51.16 million in the latest quarter compared with $76.83 million last year.

Operating income increased to $54.85 million from $28.16 million a year ago.

Operational earnings before interest, income taxes, depreciation and amortization or OEBITDA grew to $124.41 million from $121.27 million last year.

Revenue rose to $212.77 million from $197.60 million in the previous year. The consensus estimate was for $206.18 million. Service revenue was $159.86 million, up from $151.95 million.

Looking ahead, the company now expects full-year service revenue to grow about 5 percent year on year, compared with the previous outlook of 4 percent-6 percent growth. Full-year OEBITDA is now expected between $465 million and $470 million, up from the prior outlook of $460 million - $470 million.

Iridium stock had closed at $30.20, up 0.43 percent on Wednesday. It has traded in the range of $24.14 - $42.38 in the last 1 year.