Iridium Communications (IRDM): Future Growth and Stock Forecast

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

In researching stocks with high potential for future growth, we focused on Iridium Communications and examined its potential as an investment.

Iridium is a leader in satellite communications in remote and under-infrastructured areas, strengthening its market position. In addition, the growth of 5G and IoT is accelerating the demand for Iridium's technology and services.

This article will delve deeper into Iridium Communications' business, what differentiates it from its competitors, and what the future holds.

What is Iridium Communications (IRDM) and what does it do?

Iridium Communications Inc,U.S.-based satellite communications companyThe first is.
Mainly,It provides mobile satellite communication services utilizing a low earth orbit (LEO) satellite network that covers the entire globe.

Particularly,A key feature of this system is that it enables communication in remote areas, maritime, aircraft, military, and other locations where terrestrial communication infrastructure cannot reach.The first is.

Iridium is,Operates the Iridium constellation of 66 low earth orbit satellites to provide real-time voice and data communications.
In addition, through Project Stardust, the company has recently been working to enable 5G technology and direct-to-digital (D2D) communication with IoT devices.
It aims to provide communication services to a wider range of devices and industries.

Iridium's services are used in both the commercial and government sectors, with particular prominence in the military and defense sectors, supporting mission-critical communications infrastructure through satellite communications.

Current technological advances are expected to lead to a wide range of applications, including communications for IoT-enabled devices, tracking systems, and emergency communications in the event of natural disasters.

Iridium's corporate information is below.

• Company Name:Iridium Communications Inc.
• Year Established: 2001
• Head Office LocationVirginia, U.S.A.
• Name of Representative:: Matt Desch
• Official Site: https://www.iridium.com
• Main Businesses: Provision of satellite communication services, introduction of 5G and IoT communication technologies

Iridium continues to leverage the advantages of low earth orbit satellites to provide a strong communications infrastructure, especially in remote areas and mobile environments.

What are Iridium Communications' (IRDM) main services?

Iridium Communications' (IRDM) core services are based on global satellite communications.
These services enable the provision of real-time voice and data communications in areas out of reach of terrestrial telecommunications infrastructure, with the following being the primary services

Satellite voice and data communications

Iridium's core services, voice and data communications, utilize 66 low earth orbit satellites to enable communications across the globe.
Particularly,It is used in areas where there is no terrestrial communication infrastructure, such as at sea, in mountainous regions, in polar regions, and on aircraft and ships.
Real-time communication is possible through Iridium's satellite phones and data modems.

Iridium Push to Talk (PTT)

The "push-to-talk" feature is a service that enables real-time voice communication anywhere in the world, much like a walkie-talkie. It is especially used in disaster relief, military, remote work sites, and other situations where quick coordination is needed.

IoT Solutions

Iridium is,It also plays an important role in IoT (Internet of Things) areas such as asset tracking and remote monitoring.
By connecting to IoT-enabled devices and sensors, it enables real-time management and tracking of ships, aircraft, oil pipelines, etc. Low power consumption and long-term operation make it suitable for remote monitoring.

broadband data services

One of its main services is a high-speed broadband communication service called "Iridium Certus.
Enables Internet access and high-resolution data transmission on ships and aircraft.
It aims to improve digital communication in the commercial aviation and shipping industries.

Government and Military Communications Services

Iridium also provides a robust communications infrastructure for U.S. government and military agencies.
This is especially true in situations where communications are critical to mission success. Long-term contracts with defense-related and government agencies are one of Iridium's most stable sources of revenue.

Iridium's services serve a diverse range of industries and needs, and are increasingly used in remote areas and special applications in particular.

What is the business model of Iridium Communications (IRDM)?

Iridium Communications' business model relies primarily on the provision of satellite communications services.
In particular, the company provides a robust network for areas that lack terrestrial communications infrastructure or require communications in remote, maritime, aircraft, and military-related areas.

At the heart of this business model is the Iridium constellation of 66 low earth orbit (LEO) satellites operated by Iridium, which provide real-time communications services covering the entire globe.

Iridium's main source of revenue

• Voice and data communication services:.The company generates revenue by providing voice calls, messaging, and data communications to locations out of reach of terrestrial infrastructure.
  It is widely used, especially in the maritime, military, and emergency response agencies.
• Terminal sales and rentals:.The company generates revenue by selling and renting hardware such as Iridium-compatible satellite phones, modems, and tracking devices. These devices are designed for special environments, and users utilize these devices to secure communications in extreme environments.
• Government & Military Contracts:.Contracts with the U.S. government, in particular, are one of the major sources of revenue. Iridium's network provides essential communications infrastructure for military operations and defense applications, which is expected to generate stable revenues.
• Data Services and IoT:.Recently, the company has focused on Internet of Things (IoT) and 5G-enabled communication services, providing communication solutions for diverse industries such as asset tracking, logistics management, and animal tracking.
  In particular, the development of 5G-compatible direct-to-digital (D2D) services by "Project Stardust" is underway and is attracting attention as a new revenue source.

Iridium's business model is,The structure generates stable cash flow through hardware sales, recurring service fees, and long-term contracts with government agencies and commercial enterprises.
The company has established itself as the one and only communication solution provider for remote areas and special applications.

How does communication work using Low Earth Orbit (LEO) satellites?

Low Earth Orbit (LEO) satellite-based communication works by using satellites placed at a relatively low altitude, usually about 500-2000 km from the ground.
LEO satellites enable communication via satellite in areas that are out of reach of terrestrial base stations and Internet infrastructure,
Unlike geostationary satellites (GEO), which are placed in higher orbits, these satellites orbit the Earth at high speed with short periods (approximately 90 to 120 minutes).

Details on how Low Earth Orbit (LEO) satellites work are below.

Orbit Height

LEO satellites are located in low Earth orbit, which means they are close to the Earth's surface. This proximity minimizes communication latency (latency) and maintains real-time performance in voice and data communications. In particular, LEO satellites have lower latency and faster response times than GEO satellites, which orbit about 36,000 km away.

Small cell structure

LEO satellites cover a relatively small area of the Earth, and multiple satellites work together to provide communication services. Therefore, instead of one satellite covering the entire Earth, multiple LEO satellites work together to form a "satellite constellation" that covers the entire Earth. This method enables seamless communications throughout the entire Earth.

Inter-satellite communication (ISL)

LEO satellites have the ability to communicate directly with other satellites, which is called Intersatellite Link (ISL). This mechanism allows satellites to relay communications to each other and quickly send and receive data between remote locations without relying on ground stations. This ensures that communication is continuous and uninterrupted.

Tracking and handover

Because LEO satellites move at high speeds around the earth, no single satellite can cover the same point of communication for an extended period of time. To compensate for this, a process called "handover" takes place, in which multiple satellites take turns acting as relays to ensure that a connection is always maintained with the user. This maintains uninterrupted communication.

Low power consumption and cost efficiency

Since LEO satellites are deployed at relatively low altitudes, their launch and operating costs are lower than those of GEO satellites. They also consume less power for communication equipment, making them a good match for satellite communication devices and IoT devices.

What is the significance of Project Stardust and 5G-enabled satellite communications?

The significance of Project Stardust and 5G-enabled satellite communications is that it is expected to be a major step forward in next-generation communications infrastructure, particularly revolutionizing communications in remote areas and for Internet of Things (IoT)-enabled devices.

Significance of Project Stardust

Project Stardust is Iridium's next-generation communications project utilizing Low Earth Orbit (LEO) satellites, which will play a key role in supporting 5G and IoT.

Of particular note is the goal of commercializing direct communication (D2D, Direct-to-Device) between devices and satellites. This will allow 5G devices to connect directly to satellites in locations that are out of reach of conventional communications infrastructure.

• Expansion of telecommunications infrastructure:.High-speed, stable 5G communications will be possible even in remote areas such as polar regions, maritime areas, and mountainous regions where conventional terrestrial networks cannot reach. This is significant because it will provide low-cost communications in areas where conventional base stations cannot be installed or where infrastructure construction costs are high.
• IoT Progress:.The key objective of Project Stardust is to support IoT device communications, enabling devices to send and receive data to and from each other in real time.
  The use of IoT will accelerate in a variety of industries, including asset tracking, remote monitoring, and logistics management. For example, in the agriculture and oil and gas industries, remote equipment management and animal tracking will be simplified.
• Global connectivity:.The goal of Project Stardust is to make 5G communications available anywhere in the world through Iridium's global low earth orbit satellite network.
  This will allow 5G devices to maintain communications even when they are outside the network coverage of existing telecommunications carriers, for emergency communications and for transmitting critical data in remote areas.

Significance of 5G-enabled satellite communications

5G-enabled satellite communications will complement terrestrial 5G networks as a next-generation communications technology, particularly important in the following ways

• Low latency communicationLEO satellites are closer to the ground, resulting in lower latency than conventional geostationary satellite communications. This enables real-time data communications and is suitable for applications and services where response time is important (emergency communications, IoT devices that require millisecond-by-millisecond control, etc.).
• Wide range and high speed data communication:.The application of 5G high-speed data communications to satellite communications will enable high-speed, high-capacity communications to be used on ships, aircraft, remote islands, and mountainous regions. It is expected to improve the communication environment for commercial activities and lifelines.
• Integration of mobile and satellite communications:.With 5G technology, terrestrial mobile networks and satellite communications are seamlessly integrated, allowing users to continue uninterrupted communication even when they are out of range. In particular, it will contribute to social security by making it possible to send messages during emergencies and secure communications during disasters.

Project Stardust and 5G-enabled satellite communications are innovative technologies that transcend the limitations of conventional communication networks and provide stable communications in remote areas and special environments.

The IoT will accelerate its spread, improving the efficiency of various industries and the reliability of communications. In addition, the integration of satellites and 5G networks will usher in a new era of communications, enabling connectivity anywhere in the world.

How is iridium technology growing?

Iridium Communications' technological growth is a continuous evolution to accommodate the next generation of communication technologies and new applications.
Its growth has been mainly noticeable in three main areas

Satellite Constellation Update and Expansion

A project called Iridium NEXT, completed in 2017, updated all 66 low earth orbit satellites to a new generation.
This next-generation satellite fleet has the ability to improve the stability and reliability of communications and provide a wider range of communications services to a greater number of users.
This allows for IoT devices and new communication protocols to be used in a variety of industries.

5G and IoT Readiness

Through "Project Stardust," Iridium is working to deploy 5G technology to enable direct communication (D2D) between satellites and devices to meet communication needs for applications such as the Internet of Things (IoT), asset tracking, and remote operations.
Furthermore, the use of inter-satellite links (inter-satellite links: ISLs) has increased data transfer rates and communication efficiency, and has increased the flexibility of the overall communication network.

Broadband and high-speed data communications

Iridium's high-speed broadband service called "Iridium Certus" enables high-speed and stable data transmission at sea and on aircraft, where ground-based communication infrastructure cannot reach, and is being used in the commercial aviation and shipping industries.
In addition, technology has been introduced to enhance the low latency of satellite communications, improving the quality of real-time voice and data communications.

These factors have led to the technological growth of iridium, which is expanding its use in more and more industries.

Who is Iridium's (IRDM) customer base?

Iridium Communications' (IRDM) customer base is diverse, but relies particularly on industries that require communications in areas without terrestrial communications infrastructure or in special environments. The following is a list of the main customer segments.

Government and military agencies

One of Iridium's largest customer segments is the U.S. government and military. In particular, Iridium's role as a communications infrastructure for defense and security is significant, and its use is centered on situations where mission-critical communications are required.
Satellite communications are essential in combat zones and disaster response where terrestrial infrastructure cannot reach, and are a stable source of revenue for Iridium.

Shipping and Aviation Industry

When global communications are required by ships and aircraft, Iridium's satellite communications services are used as a means of communication, especially at sea and in remote areas.
Ship location tracking, emergency communications at sea, and Internet access for aircraft are examples, and Iridium's "Iridium Certus" broadband service is in high demand in this area.

Disaster relief agencies and NGOs

During major disasters such as earthquakes, tsunamis, and hurricanes, terrestrial communications infrastructure is often destroyed. Organizations and NGOs engaged in disaster relief efforts use Iridium's satellite communications to maintain contact in the affected areas. It is also used as an indispensable means for real-time situation reporting and coordination of rescue operations.

Energy & Resources Industry

Energy-related companies such as oil, gas, and mining companies use Iridium's services as a means of communication for resource extraction and production in remote locations. The service enables remote monitoring of equipment and resources, and real-time notification in the event of equipment failure.

IoT (Internet of Things) related industries

With the proliferation of IoT devices, Iridium offers remote monitoring, asset management, and tracking solutions. They are used in the agriculture, logistics, and transportation industries to track and collect data on equipment, animals, and products, especially for extensive global tracking needs.

Commercial and individual users

Individual users such as mountaineers, explorers, and journalists who access remote areas, as well as commercial companies involved in remote projects, also use Iridium's satellite communications. In particular, satellite telephony and data modem-based communications have become important means of communication in areas where there is no terrestrial infrastructure.

Iridium's customer base is thus broad, and Iridium's services play an important role, especially in situations where a reliable communications infrastructure is required in remote areas and special environments.

What is the trading market?

Iridium Communications is listed on the NASDAQ market and its ticker symbol is "IRDM".

What are the sectors, industries, and themes to which Iridium (IRDM) belongs?

sector

Telecommunications:.Iridium Communications (IRDM) belongs to the telecommunications sector. In particular, IRDM provides satellite communications using low earth orbit (LEO) satellites that cover the entire globe, and is positioned as a provider of important communication means in areas where communication infrastructure is not available. By using satellite communication technology, IRDM provides stable communication services in areas and extreme environments where terrestrial networks cannot reach.

type of industry

Wireless Telecommunication Services:.The industry is classified as wireless communication services.
Iridium provides voice and data communication services via low earth orbit satellites, primarily in remote areas, ships, aircraft, and military applications. Unlike other telecom companies, Iridium's strength in providing voice and data communications via satellite is that it does not rely on terrestrial infrastructure and is therefore able to meet specialized needs.

Themes belonging to

Satellite Communications, IoT, 5G Integration:.Iridium is closely related to the theme of providing services that combine satellite communications technology with next-generation 5G communications.
In particular, the direct communication between 5G and IoT devices (D2D) by Project Stardust and Iridium Certus, a 5G-enabled high-speed communication service, are attracting attention as new technologies that will support the future communication infrastructure.
The widespread use of IoT-enabled devices for asset tracking and remote monitoring has also increased demand in a variety of industries, including logistics, shipping, and agriculture.

Dividends?

Iridium Communications (IRDM) is currentlyDividends not paidThe following is a list of the most common problems with the "C" in the "C" column.

Who are Iridium's (IRDM) competitors?

Iridium Communications (IRDM)'s main competitors are.

• SpaceX [Starlink]:.Starlink, operated by SpaceX, provides Internet services using low earth orbit (LEO) satellites and competes directly with Iridium's satellite communications services.Starlink is particularly focused on Internet access services for general consumer use, but competition is expected in remote areas and military competition is also expected in remote areas and military applications. Both companies share the use of LEO satellites to provide communications services to areas not reached by terrestrial infrastructure.
• Inmarsat:.Headquartered in the United Kingdom, Inmarsat is a strong player primarily in maritime and air communications, competing with Iridium's services for the shipping and aviation industries. Inmarsat uses high orbit satellites (GEO) and offers a wide range of communications services, especially for ships and aircraft. While both companies focus on maritime and aviation communications, Iridium differentiates itself by utilizing low orbit satellites to provide low latency communications.
• Globalstar:.Globalstar, like Iridium, provides communications services utilizing low earth orbit satellites and competes directly with Iridium in the areas of voice and data communications. Globalstar is particularly focused on IoT-related and remote area communications, and like Iridium, is used in a wide range of industries.
• SES S.A.:.SES is a European-based satellite communications company with particular strength in broadcasting and data communications services using high orbit satellites (GEO). In recent years, the company has also expanded into communications services using low earth orbit (LEO) satellites, and has some competition with Iridium. The two companies share a common focus on providing global communications infrastructure, especially for enterprise and government customers.
• Orbit Communications (ORBCOMM):.ORBCOMM competes with Iridium by providing satellite communications services primarily focused on IoT communications and asset tracking; ORBCOMM provides data communications services to the logistics and transportation industries and competes with Iridium in these areas.

These companies, like Iridium, utilize satellite communications to provide communications services in remote areas and for special applications, competing in specific markets and technology areas.

What is the size and growth potential of the industry to which Iridium (IRDM) belongs?

The size and growth potential of the satellite communications industry, of which Iridium Communications (IRDM) is a part, is expected to grow significantly over the next several years.

Industry Size

The overall satellite communications market is estimated to be worth approximately $60 billion in 2023, and is expected to continue to grow.
The main segments of the market are data communications, voice communications, broadcasting, and Internet services, with Iridium's focus on remote area communications and communications services for the Internet of Things (IoT) being a particularly fast growing segment.

growth potential

Satellite communications market is projected to grow at a compound annual growth rate (CAGR) of approximately 9-101 TP3T between 2023 and 2030The following factors support this. This is supported by the following factors

• 5G and IoT proliferation
  With the introduction of 5G networks, satellite communications are playing an important role in supporting 5G backhaul in remote areas. Furthermore, as IoT devices become more prevalent, demand for applications such as asset tracking and remote monitoring is increasing.
• Increased demand for telecommunications in remote areas
  Increasing demand for communications in places where terrestrial communications infrastructure cannot reach, such as aviation, shipping, and energy development in remote areas, is driving the growth of companies utilizing low earth orbit (LEO) satellites like Iridium.
• Increased reliance on government and military agencies
  Demand for satellite communications for disaster response and national defense communications infrastructure is also growing steadily, especially in situations where mission-critical communications are required.

The satellite communications industry, of which Iridium is a part, is expected to continue to grow steadily.
The projected average annual growth rate of 9-101 TP3T also represents a long-term growth opportunity for the company.

What are the differentiating factors and advantages of iridium (IRDM) over the competition?

Iridium Communications' (IRDM) differentiating factors and advantages over its competitors, especially itsLow Earth Orbit Satellite (LEO) Networkcharacteristics and the broad applicability of its services. The key differentiators and advantages are detailed below.

Use of Low Earth Orbit (LEO) satellite networks

Iridium's key differentiators are,It has a major advantage in that it uses low earth orbit (LEO) satellites, which have low communication latency.
Compared to competitors (e.g., Inmarsat and Viasat) that use GEO (geostationary orbit) satellites, LEO satellites are closer to Earth, minimizing latency in voice and data communications and making them ideal for applications requiring real-time performance.

This real-time communication is an important advantage, especially in mission-critical military and disaster relief.

Global Coverage

Iridium has 66 low earth orbit satellites covering the entire earth's surface,Communication is possible in places where terrestrial communication infrastructure cannot reach, such as polar regions, oceans, aircraft, and remote areas.
It is being used in the maritime, aviation, and energy industries. Iridium can provide uninterrupted communication worldwide while other competitors may be limited to specific regions.

5G/IoT support through Project Stardust

Iridium is,The company is developing "Project Stardust," a project to promote integration with 5G, the next generation of telecommunications technology, and IoT devices, which will be one of the differentiating factors going forward.

In addition to conventional satellite communications, it enables direct-to-digital (D2D) communications with IoT devices, making it applicable to a wider range of industries and daily life. Thus, Iridium is expected to expand its market in the future by adapting to next-generation communications.

Strong relationships with military and government sectors

Iridium is,Contracts with the U.S. government and military agencies are a major source of revenue, which gives the company a strong competitive advantage over its competitors.
In particular, the company is highly trusted as a communications infrastructure for national defense and security, and these long-term contracts not only generate stable revenues, but also secure funding for technological development.

High-speed broadband service with Iridium Certus

The 5G-enabled "Iridium Certus" high-speed broadband communication service enhances communications, especially in mobile environments such as ships and aircraft.
High-speed, stable Internet access is now available in remote areas, and demand is growing in the shipping and airline industries. This is another point of differentiation from the competition.

Low-cost IoT solutions

Iridium is,The company provides low-cost, long-running communication services for IoT devices, which is what differentiates it from the competition.
The company has demonstrated its strength in IoT markets such as remote monitoring and asset tracking.

These and other competitive differentiators and advantages of Iridium are significant strengths, especially in remote areas and in industries requiring mission-critical communications.

Performance of Iridium (IRDM)

Iridium Communications (IRDM) has a financial year ofDecember 31The company will end the fiscal year at The schedule for the announcement of quarterly financial results is as follows

• First Quarter Results: Around late April
• Second Quarter Financial Results: Around late July
• Third Quarter Results: Late Oct.
• Fourth Quarter and Full Year Results: Around mid-February

First, we will review the following four indicators to perform a minimum performance analysis of Iridium Communications (IRDM).

1. Sales:An indicator of a company's performance and growth.
2. Operating cash flow and operating cash flow margin:An indicator that looks at how much cash a company generates from its services. Margins are considered excellent when they are 15% of that ratio.
3. Operating Income:Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. Free Cash Flow:Free cash that a company keeps on hand. Indicates financial flexibility and business stability.
5. EPS:An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the profitability.

Each data is,Investing.com, ,TradingViewSee from

Iridium (IRDM) Stock Price

View the current real-time stock price chart (TradingView) for Iridium (IRDM).

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

Iridium (IRDM) Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

Iridium (IRDM) Quarterly: Operating Cash Flow and Free Cash Flow Trends

Quarterly operating cash flow, operating cash flow margin and free cash flow.

Each transition is shown in the graph below.

Iridium (IRDM) Quarterly: Operating Income and Operating Margin Trends

Quarterly operating income and operating margin trends.

Each transition is shown in the graph below.

Iridium (IRDM) Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Iridium (IRDM) Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

Iridium (IRDM) Full Year: Operating Cash Flow, Free Cash Flow Trends

Operating cash flow, operating cash flow margin and free cash flow for the full year.

Each transition is shown in the graph below.

Iridium (IRDM) Full Year: Operating Income and Operating Margin Trends

The following is a trend of operating income and operating income margin for the full year.

Each transition is shown in the graph below.

Iridium (IRDM) Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

What are the future lives and prospects of iridium (IRDM)?

The future and prospects for Iridium Communications (IRDM) are expected to remain strong, especially supported by the growth of the satellite communications market and technological innovation.
The following is an outlook for the future based on key factors.

Expansion into 5G and IoT markets

Through "Project Stardust," Iridium is working to support 5G technology and IoT devices, providing a next-generation communications infrastructure that will enable direct communication with devices in remote areas and polar regions where conventional communications networks cannot reach. This technological advancement will accelerate the growth of the satellite communications market in the future, and Iridium is positioned as a core player in this market.

• Expansion of IoT devices: The IoT market is growing rapidly, with particular emphasis on remote surveillance and asset tracking. Iridium's Low Earth Orbit (LEO) satellite network addresses these needs and is a promising source of future revenue.

Strengthening Government and Military Contracts

Iridium has long-term contracts with the U.S. government and military agencies, which have been a stable source of revenue. Demand in this area is expected to remain high, particularly due to its growing importance as a communications infrastructure for national defense and disaster relief. In addition, Iridium's technology is highly reliable in mission-critical situations, and government contracts are expected to continue to grow.

Developing new market segments

Iridium is increasingly being used in diverse industries, including the shipping, airline, energy, and logistics industries. In particular, Iridium's high-speed broadband service, Iridium Certus, has been well received in these industries, which require low latency and wide area communications, and is expected to continue to grow in this segment.

• Marine and Aviation Services: Demand for broadband at sea and in aircraft is growing, and Iridium is a major player in this market, looking to expand further.

Overall industry growth forecast

The overall satellite communications market is projected to grow at a compound annual growth rate (CAGR) of 9-101 TP3T from 2023 to 2030, with Iridium expected to maintain a strong position within this market. In particular, the expansion of the 5G and IoT markets and increasing demand for telecommunications in remote areas will be the drivers of industry growth.

Stock Price Outlook

Analysts are relatively bullish in their stock price forecasts. In particular, stable share price growth is expected over the long term on the back of increasing demand for 5G and IoT.

These factors suggest that the future of Iridium Communications is promising, with solid growth expected in the coming years.
The company also has long-term potential, as it continues to innovate and expand in new markets and industry segments.

Iridium (IRDM) Q3 2024 Financial Results Summary

• Net sales: $212.8M, an increase of 8% over the same period last year.
  • service revenue: $159.85M (751 TP3T of total sales), an increase of 51 TP3T over the same period last year.
  • Equipment sales revenue: $22.17 million, an increase of 91 TP3T over the same period last year.
  • Engineering and support revenue: $30.74 million, an increase of 221 TP3T from the same period last year.
• net income: $24.44 million, a significant improvement from the loss of $1.64 million in the same period last year.
• OEBITDA(operating cash flow): $124.4M, up 3% y/y.

Performance by Segment

• Commercial Services: $133.3M (631 TP3T of total sales), an increase of 61 TP3T over the same period last year.
  • Commercial IoT Data Revenue: $43.69M, up $14% YoY; IoT-related revenues expanded.
  • Voice and Data Services: $57.69 million, an increase of 31 TP3T over the same period last year.
• Government Services: $26.54 million, almost unchanged from the same period last year.
• Equipment sales: $22.17 million, an increase of 91 TP3T over the same period last year.
• Engineering and Support: $30.74M, up 22% YoY due to engineering contracts with the U.S. government.

Other Highlights

• Number of subscribers: Total subscribers were 2.482 million, up 111 TP3T YoY; IoT data subscribers accounted for 811 TP3T of the total.
• Government Contracts: Provides services under the Enhanced Mobile Satellite Services (EMSS) contract with the U.S. government. Annual contract value increased to $107 million.

Future Outlook

• Full Year Forecast: Service revenues are expected to increase by 51 TP3T in FY2024, with OEBITDA of $465-$470M.
• shareholder return: An additional $500 million share buyback program is planned through 2027.

Iridium Communications recorded solid revenue growth in the third quarter of 2024, particularly in commercial IoT data. The company also expects to grow in the coming years as a result of U.S. government contracts and enhanced shareholder return programs.

What brokerage firms can I buy Iridium (IRDM) stock?

The following is a list of major brokerage firms that offer Iridium (IRDM) shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Iridium Communications' business, its unique characteristics, competitive advantages, and earnings growth.

Financial data and market forecasts indicate that Iridium is expected to achieve further stable growth beyond 2024. Along with sales growth, cash flow is improving, and the company is entering an important phase in which the balance between investment in its massive satellite business and earnings is improving. Profits are also on an upward trend.

Trends in stock prices are also expected to recover from the bottoming out.
With the satellite communications market itself expected to grow significantly, we expect the stock price to rise in the future.

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