Global satellite communications provider Iridium (NASDAQ: IRDM) Recently, stocks plummeted following the sale of benchmarks. The satellite-based broadband provider serves industries ranging from aviation, transportation, logistics, emergencies, shipping, energy and government. Commercial services accounted for the largest taxpayer with 59% of total revenue. The company reported record equipment sales in its first fiscal 2022 earnings report and exceeded analysts’ estimates by $ 0.02 per share. Its main business is to “shoot all the cylinders,” according to CEO Matt Desch. The company grew its subscriber base by 17% driven largely by the Internet of Things (IoT). By the way, the company is gaining business from competitors who suffer from supply chain limitations. However, Iridium is also facing supply chain constraints that are generating backlog, but expects to meet demand by the end of the year. The conflict between Russia and Ukraine is also increasing the demand for mobile phones. The solid financial position and growth trajectory of the company allow ESG compliance without sacrificing opportunities or business priorities. Prudent investors looking for exposure in a space and satellite company that actually makes a profit can watch for opportunistic setbacks in Iridium shares.
Publication of results for the first quarter of the financial year 2022
On April 19, 2022, Iridium released its fiscal results for the first quarter of 2022 for the quarter ended March 2022. The company reported earnings per share (EPS) of $ 0.02, exceeding analyst consensus estimates for equilibrium, at $ 0.02. Revenue rose 14.8% year-over-year (YoY) to $ 168.2 million, compared to consensus analysts’ estimates of $ 156.83. Revenue consisted of $ 126.1 million in service revenue and $ 42.1 million in equipment sales. Net leverage was 3.4 times OEBITDA at December 31, 2021. Iridium closed the quarter with 1,781,000 total billable subscribers, up 17% year-on-year driven by IoT growth. Iridium CEO Matt Desch commented: “Iridium continued to see strong demand during the first quarter. I am continually amazed at the innovative ways in which our technology and distribution partners use our satellite network. unique to drive growth and serve their respective markets. “
Reaffirmed guidance for the full fiscal year 2022
The company reaffirmed the guidelines for the full year 2022, with total service revenue growth of between 5% and 7% of total service revenue of $ 492 million in 2021. EBITDA O is expected ( operational) for the full year 2022 between $ 400 and $ 410 million, up from $ 378.2 million in 2021.
CEO Desch began by stating that the space and satellite industry remains vibrant and optimistic, and Iridium is in the midst of this dynamic as a “clear leader.” Its core business is robust as demand for commercial landline mobile phones continues at a strong pace. This is due to the growing momentum of the problems of PTT, quality products and supply chain that competitors face. Maritime is improving for most countries, as evidenced by its growing ARPUs thanks to the faster Iridium Certus speeds compared to its legacy Iridium OpenPort terminals. Highlights were the strong tailwinds of IoT demand stemming from the rapidly growing variety of personal satellite messaging devices on the network. Iridium released 50,000 commercial IoT activations during the quarter. He noted that it would have been higher if they had the supply to cover the demand, which is expected at the end of the year. The U.S. government business is a cornerstone of its service revenue business. New Iridium Certus network-compatible video compression technology helps improve efficiency by making your service more attractive to both government and commercial applications. CEO Desch noted that growth in U.S. government subscribers is still lagging behind due to the transition of the Space Force and DISA to administer the EMSS contract. While he has no immediate need to launch satellites, he still sees the opportunity to launch most of his spare Earth satellites. It would be a one-time $ 35 million expense that shouldn’t affect CapEx’s overall vacation plans.
Opportunistic IRDM withdrawal levels
The use of rifle graphics in weekly and daily time periods allows an accurate view of the playing field for IRDM stock. The weekly upward trend of the rifle chart made a strong investment as stocks hit a high and rebounded just below $ 42.99. Fibonacci level (fib).. Shares collapsed through 5-period weekly moving average (MA) support at $ 40.05. the 50-period weekly MA at $ 39.79, and the 15-period weekly MA at $ 37.97 in a candle. The weekly stochastic also peaked and rejected the 80 band. The lower weekly Bollinger Bands (BB) bands are at $ 31.58. The weekly Low Market Structure (MSL) activated buy at previous break up $ 35.48. The daily rifle chart has been in a consolidation that is trying to break as the upper and lower BBs start to expand to $ 43.71 and $ 37.45, respectively. The daily 5-period MA at $ 39.85 crossed below the 200-day daily MA at $ 40.08 as the 15-period MA begins to fall. Shares fell during the 50-day daily MA to $ 39.24 to exceed daily BBs below $ 37.45. The daily stochastic fell again by the band of 40. Prudent investors can watch the opportunistic withdrawal levels at the level of $ 35.42 fib, $ 33.06 fib, $ 31.38 fib, $ 30.62 fib, $ 28.25 fib, $ 27.39 fib and the $ 24.27 fib level. Rising trajectories range from the $ 43.67 fib level to the $ 52.35 fib level.