Iridium Communications Beats On Q2 Earnings, Raises FY21 Service Revenue Outlook

Iridium Communications Inc IRDM reported second-quarter FY21 revenue growth of 7% year-on-year to $149.9 million, beating the analyst consensus of $148.53 million.
Service revenue rose 7% Y/Y to $121.3 million. Revenue from equipment sales and engineering and support projects was $28.6 million.
Commercial service revenue was $95.6 million, up 8% Y/Y.
Commercial broadband revenue was up 25% Y/Y to $10.6 million.
Hosted payload and other data service revenue were $14.4 million.
Government service revenue was $25.8 million.
Strong service revenue primarily contributed to an OEBITDA margin expansion of around 240 basis points to 63.2%.
Total billable subscribers rose 19% Y/Y to 1.6 million, driving growth across every service category.
The EPS of $0.03 beat the analyst consensus for loss per share of $(0.06).
It held $219.4 million in cash and equivalents.
The company repurchased shares worth $63.2 million during the quarter.
Iridium delivered strong revenue growth in Q2, driven by rebounds in IoT and commercial voice and data, and continued strength in broadband, CEO Matt Desch stated.
Outlook: It sees an OEBITDA of $365 million to $375 million.
It also raised its FY21 outlook for service revenue growth to 4% to 5%, versus prior outlook of 3% growth.
Price action: IRDM shares traded higher by 3.17% at $38.75 in the premarket session on the last check Tuesday.

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