May 27, 2023

Eleon 1 min ago 0 Global specialist in satellite communications Iridium Communications Inc. (NASDAQ:IRDM) has a lot to offer. The stock isn’t exactly at new highs, but several of its features look stellar. The company is expected to post triple-digit profit growth this year, analysts are optimistic about the stock’s outlook and a smartphone deal with Qualcomm Inc. (NASDAQ: QCOM) should generate significant revenue next year. If that’s not enough, the company has also returned capital to shareholders via a brand new dividend, as well as buyouts. Stocks consolidated below a mid-April high. Iridium stock rebounded nearly 11% on April 20 following the company’s first-quarter earnings report, which beat expectations. The stock hit a high of $68.34 on April 24 before pulling back in a correction. So far, Iridium stock is holding above its previous structure of $57.75, but it has fallen near that level twice. If it’s below this low level, that’s not a bad thing. The stock is up 16.65% year-to-date, and a lower structure could make the stock more attractive to institutions looking to acquire shares at a more attractive price. Analysts like what they see Analyst ratings from Iridium Communications show a “buy” consensus on the stock. Following the first quarter report, analysts at Raymond James and Morgan Stanley raised their price targets. The consensus price target is $67, up 12.93%. When a stock with a “buy” rating consolidates, it is an excellent time for potential investors to assess its prospects without feeling the need to chase the price as it rises. The company returned to profitability in 2022 and Wall Street expects net income to rise 334% this year, to $0.30 per share. Next year, that will rise another 45% to $0.44 per share. In the first quarter, according to earnings data from MarketBeat’s Iridium Communications, the company beat the sights on the high and the low. Stabilization of earnings growth Earnings growth has been somewhat erratic, but as you can see, it is expected to stabilize. The satellite industry is capital intensive. In 2019, the company completed a decade-long upgrade campaign. In 2020 and 2021, losses narrowed before the company reported net earnings of $0.07 per share last year. Iridium divides its revenues into three main areas: services, subscriber equipment, and engineering and support services. Services, the largest revenue generator, consists of voice and data communications for businesses, US and foreign governments, non-governmental organizations and consumers. Iridium operates a network of 66 operational satellites with spares in orbit and on the ground, as well as associated ground infrastructure. The company’s satellite network serves customers in the areas of personal communications, shipping, transportation and delivery, emergency services, industry, aviation, research and energy, among others. Revenue growth has been on the rise over the past two years. The three-year revenue growth rate is 10%. Smartphone contract with Qualcomm In January, Iridium announced an agreement with Qualcomm to enable satellite messaging and emergency services in smartphones powered by Qualcomm’s Snapdragon mobile platforms. According to Iridium, “as opposed to selecting a single smartphone manufacturer, Iridium’s collaboration with Qualcomm Technologies aims to support satellite services across a variety of smartphone brands and has the potential to expand to other consumer devices in the future”. Although the company is in growth mode, it has also made the decision to return capital to shareholders in the form of dividends and share buybacks. Iridium’s dividend yield is 0.88%. The company paid its first dividend in March; its next ex-dividend date is June 14. Strong share buyback program In the first quarter of 2023, Iridium also purchased approximately 900,000 common shares at an average price of $59.84 for a total of $53.1 million. Since the end of the quarter, the company has repurchased an additional 500,000 shares for a total of $29.4 million, leaving it with $97.1 million of capacity outstanding in its share buyback program. The stock is currently not in a buy zone and is trading below its 50-day average. Watch for a resumption of an uptrend before jumping in. It’s not necessarily the case that you should wait for Iridium price to break above its April high, but you would like to see moving average support and a rebound from the low of the current pattern. . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. nasdaq Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. Eleon 1 min ago