Iridium's Q3 Earnings Beat on Higher Revenues, Stock Soars 11%

Core Viewpoint - Iridium Communications (IRDM) reported a significant improvement in earnings for Q3 2024, with earnings per share (EPS) of 21 cents, surpassing the Zacks Consensus Estimate by 5% and recovering from a loss of 1 cent per share in the same quarter last year [1][2]. Financial Performance - Quarterly revenues reached $212.8 million, reflecting an 8$159.9 million, contributing 75% to total revenues, supported by strong recurring revenues from increased subscriber engagements [3][6]. - Subscriber Equipment revenues increased by 9% to $22.2 million, while Engineering and support revenue surged 22$30.7 million due to heightened activity with the U.S. government [4][6]. Operational Metrics - Total operating expenses decreased to $157.9 million from$169.5 million in the prior-year quarter, primarily due to lower depreciation and amortization costs [6]. - Operational EBITDA (OEBITDA) increased by 2.5% year-over-year to $124.4 million, with operating income rising to$54.9 million from $28.2 million in the previous year [6]. Subscriber Growth - As of September 30, 2024, the company had 2,482,000 billable subscribers, an 11$159.6 million, with net debt of $1.7 billion [6]. - In Q3 2024, the company repurchased 4.7 million shares worth$128.6 million and announced an additional $500 million share repurchase program through December 31, 2027 [7]. 2024 Outlook - Based on the strong Q3 performance, Iridium revised its full-year 2024 outlook, now expecting total service revenue growth of about 5$465 million and $470 million, an increase from the previous range of$460 million to $470 million [8].