Iridium Communications (IRDM) Tops Q2 EPS by 3c, Revenues Beat

Iridium Communications (NASDAQ: IRDM) reported Q2 EPS of ($0.09), $0.03 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $140.2 million versus the consensus estimate of $136.77 million.

"Despite the headwinds caused by the global pandemic, Iridium continues to grow subscribers, service revenue and cash," said Matt Desch, CEO, Iridium. Desch continued, "As businesses around the world started to reopen in the second quarter, we've also seen some recovery in activity from our technology and distribution partners."

Commenting on the full-year outlook, Desch added, "With each passing month, we are getting increased visibility that allows us to refine our guidance for the year. Iridium is fortunate to provide mission-critical services across a broad array of industries, which has allowed our business to remain resilient in this environment. I think it's notable that despite the economic slowdown, Iridium increased its cash position by more than $50 million in the second quarter, all of which came from operating activities. We expect to continue to generate significant free cash flow in 2020 and beyond."

2020 Outlook

The Company refined its full-year 2020 outlook for total service revenue growth and OEBITDA. The Company now expects:

• Total service revenue growth between 1% and 2% for full-year 2020. Total service revenue for 2019 was $447.2 million.
• Full-year 2020 OEBITDA of approximately $340 million. OEBITDA for 2019 was $331.7 million.
• Negligible cash taxes in 2020. Cash taxes are expected to be negligible through approximately 2023.
• Net leverage of approximately 4.3 times OEBITDA at the end of 2020. Net leverage was 4.8 times OEBITDA at December 31, 2019.

For earnings history and earnings-related data on Iridium Communications (IRDM) click here.

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