Iridium's Q3 Revenue Soars 8%, FY24 Outlook Brightens As Subscriber Base Expands
Portfolio Pulse from Nabaparna Bhattacharya
Iridium Communications Inc. (NASDAQ:IRDM) reported an 8% increase in Q3 revenue, driven by higher commercial service and government engineering revenue. The company exceeded revenue expectations and maintained its EPS in line with estimates. Iridium's subscriber base grew by 11% year-over-year, contributing to a 5% increase in service revenue. The company revised its FY24 OEBITDA guidance upwards and expanded its stock buyback program. IRDM shares rose by 14.2% following the announcement.
October 17, 2024 | 2:30 pm
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Iridium Communications reported an 8% increase in Q3 revenue, surpassing expectations. The company maintained its EPS in line with estimates and revised its FY24 OEBITDA guidance upwards. The subscriber base grew by 11% year-over-year, boosting service revenue by 5%. The company also expanded its stock buyback program. As a result, IRDM shares rose by 14.2%.
The positive earnings report, exceeding revenue expectations, and the upward revision of FY24 OEBITDA guidance are likely to boost investor confidence. The significant growth in the subscriber base and the expansion of the stock buyback program further enhance the company's financial outlook, leading to a 14.2% increase in share price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100