The company reported earnings of 19 cents a share, which edged the Capital IQ consensus estimate 18 cents a share by a penny. Revenue rose 9.9% year over year to $98 million, which beat the consensus estimate of $94.27 million.
Iridium also confirmed its full-year 2014 guidance for total service revenue growth in the range of 2% to 4% and OEBITDA in the range of $205 million to $215 million. OEBITDA was $201.1 million. The company also restated its long-range guidance with compound annual service revenue growth in the range of 8% to 12%.
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The stock was up 13.79% to $7.59 at 3:06 p.m.
Separately, TheStreet Ratings team rates IRIDIUM COMMUNICATIONS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IRIDIUM COMMUNICATIONS INC (IRDM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- IRDM's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 6.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Even though the current debt-to-equity ratio is 1.11, it is still below the industry average, suggesting that this level of debt is acceptable within the Diversified Telecommunication Services industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.14 is very high and demonstrates very strong liquidity.
- The gross profit margin for IRIDIUM COMMUNICATIONS INC is currently very high, coming in at 71.09%. Regardless of IRDM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IRDM's net profit margin of 15.86% compares favorably to the industry average.
- IRIDIUM COMMUNICATIONS INC's earnings per share declined by 10.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, IRIDIUM COMMUNICATIONS INC reported lower earnings of $0.72 versus $0.82 in the prior year. This year, the market expects an improvement in earnings ($0.77 versus $0.72).
- In its most recent trading session, IRDM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: IRDM Ratings Report