Iridium Communications (NASDAQ:IRDM) Trading 14.6% Higher Following Earnings Beat

Iridium Communications Inc (NASDAQ:IRDM)’s share price was up 14.6% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $21.66 and last traded at $21.15. Approximately 1,712,574 shares traded hands during trading, a decline of 23% from the average daily volume of 2,225,559 shares. The stock had previously closed at $18.46.

The technology company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.01. Iridium Communications had a return on equity of 23.78% and a net margin of 13.12%.The company had revenue of $212.94 million during the quarter, compared to the consensus estimate of $219.14 million. During the same quarter in the prior year, the company earned $0.32 EPS. The firm’s quarterly revenue was up .0% compared to the same quarter last year.

Iridium Communications Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 15th were paid a $0.15 dividend. The ex-dividend date was Monday, December 15th. This represents a $0.60 annualized dividend and a dividend yield of 2.6%. Iridium Communications’s dividend payout ratio (DPR) is presently 53.10%.

Key Iridium Communications News

Here are the key news stories impacting Iridium Communications this week:

• Positive Sentiment: Q4 EPS topped estimates and drove the rally — Iridium reported $0.24 EPS versus consensus $0.23, with recurring service revenue and IoT growth offsetting equipment weakness; the market rewarded the beat. IRDM Q4 Earnings Top on IoT Strength, Revenues Lag, Stock Soars 21%
• Positive Sentiment: Strong profitability metrics and call commentary — management highlighted solid EBITDA expansion and durable subscription/recurring revenue trends on the earnings call, supporting near-term cash generation. Iridium Communications Inc (IRDM) Q4 2025 Earnings Call Highlights: Strong EBITDA Growth Amid …
• Neutral Sentiment: Company issued full-year 2026 guidance alongside 2025 results — management published its 2026 outlook (details in the PR), giving investors new forward data to reprice the stock; guidance content is driving intra-day positioning. Iridium Announces 2025 Results; Issues 2026 Outlook
• Neutral Sentiment: Market write-ups explaining the move — several outlets summarized the rally and underlying drivers for investors looking for context. Why Iridium Communications Inc.’s (IRDM) Stock Is Up 15.39%
• Negative Sentiment: Revenue missed expectations and was roughly flat year-over-year — top-line softness (equipment sales weakness) tempers the EPS beat and could limit upside until revenue growth re-accelerates. IRDM Q4 Earnings Top on IoT Strength, Revenues Lag, Stock Soars 21%
• Negative Sentiment: Company flagged slower 2026 dynamics and risks to competitive edge — analyst notes and company disclosures highlighted a more cautious 2026 pace and a new trade-secrets/IP risk item that could affect long-term differentiation. Iridium Communications’ IP at Risk: How Global Legal Gaps Threaten Its Technology Edge and Profitability

Analysts Set New Price Targets

Several research analysts recently commented on the stock. BWS Financial reaffirmed a “sell” rating and issued a $16.00 price objective on shares of Iridium Communications in a report on Friday, October 24th. Weiss Ratings restated a “sell (d+)” rating on shares of Iridium Communications in a research report on Thursday, January 22nd. Finally, Morgan Stanley reiterated an “equal weight” rating and issued a $24.00 price target (down from $37.00) on shares of Iridium Communications in a research report on Friday, January 16th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $25.00.

Hedge Funds Weigh In On Iridium Communications

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Millennium Management LLC lifted its position in Iridium Communications by 265.8% during the third quarter. Millennium Management LLC now owns 3,039,731 shares of the technology company’s stock valued at $53,074,000 after purchasing an additional 2,208,857 shares during the last quarter. Man Group plc increased its holdings in shares of Iridium Communications by 226.3% in the 3rd quarter. Man Group plc now owns 2,012,077 shares of the technology company’s stock worth $35,131,000 after buying an additional 1,395,485 shares during the last quarter. ARK Investment Management LLC raised its position in shares of Iridium Communications by 21.7% during the 3rd quarter. ARK Investment Management LLC now owns 6,490,108 shares of the technology company’s stock valued at $113,317,000 after buying an additional 1,156,580 shares in the last quarter. Silver Heights Capital Management Inc lifted its holdings in shares of Iridium Communications by 22.7% during the 3rd quarter. Silver Heights Capital Management Inc now owns 5,189,703 shares of the technology company’s stock worth $90,612,000 after acquiring an additional 961,440 shares during the last quarter. Finally, Bank of America Corp DE grew its position in Iridium Communications by 124.8% in the third quarter. Bank of America Corp DE now owns 1,581,142 shares of the technology company’s stock worth $27,607,000 after acquiring an additional 877,760 shares in the last quarter. 84.36% of the stock is currently owned by hedge funds and other institutional investors.

Iridium Communications Trading Up 3.5%

The stock has a 50 day moving average of $18.99 and a 200 day moving average of $19.59. The company has a debt-to-equity ratio of 4.02, a current ratio of 2.67 and a quick ratio of 1.93. The firm has a market cap of $2.43 billion, a P/E ratio of 21.86, a PEG ratio of 1.36 and a beta of 0.61.

About Iridium Communications

Iridium Communications Inc operates a global satellite communications network that delivers voice and data services across land, sea and air. The company’s unique architecture relies on a constellation of 66 low-Earth orbit satellites, enabling real-time connectivity in regions beyond the reach of terrestrial wireless networks. Iridium’s core offerings include satellite voice and messaging services, broadband data terminals, push-to-talk (PTT) interoperability and machine-to-machine (M2M) solutions for the Internet of Things (IoT).

Iridium serves a diverse range of markets, including maritime shipping, aviation, government and defense, energy, and enterprise.