Iridium Sets Positive 2024 Outlook, Eyes Revenue Growth, Rising Subscriber Numbers
Portfolio Pulse from Anusuya Lahiri
Iridium Communications Inc (NASDAQ: IRDM) reported a flat Q4 FY23 revenue growth at $194.74 million, slightly above consensus. The company saw a significant EPS beat at 30 cents versus the expected $0.03, driven by a 10% increase in commercial service revenue and a 14% rise in total billable subscribers. Despite a 60.1% drop in equipment revenue, operational EBITDA grew by 7% Y/Y. For FY24, Iridium anticipates a service revenue growth of 4%-6% and operational EBITDA between $460 million-$470 million. IRDM shares rose 1.17% in premarket trading.
February 15, 2024 | 4:26 pm
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Iridium Communications Inc reported strong Q4 FY23 results with an EPS beat and steady revenue growth, alongside positive FY24 outlook.
The significant beat on EPS expectations and the positive outlook for FY24 service revenue growth are strong indicators of Iridium's financial health and operational efficiency. The premarket stock price increase reflects investor optimism. However, the drop in equipment revenue and the high level of gross debt could be areas of concern for some investors.
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