Overview

• U.S. satellite services provider's Q2 revenue rose 4%, beating analyst expectations

• Q2 net income and EPS fell due to higher transaction costs from pending Rocket Lab acquisition

• Company completed Aireon acquisition, expected to add at least $100 mln service revenue annually

Outlook

• Company does not intend to provide financial guidance due to pending acquisition by Rocket Lab

Result Drivers

• COMMERCIAL IOT GROWTH - Commercial IoT data revenue rose 5% on a 9% increase in billable subscribers

• SERVICE REVENUE GAINS - Commercial and government service revenues both increased, with commercial service up 4% and government service up 3%

• HIGHER TRANSACTION COSTS - Net income declined due to increased transaction costs related to the pending Rocket Lab acquisition

Company press release: ID:nPn1N0rPta

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$225.24 mln	$220.65 mln (5 Analysts)
Q2 EPS		$0.09
Q2 Net Income		$9.68 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Iridium Communications Inc is $39.50, about 16.4% below its July 21 closing price of $47.24

• The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 24 three months ago

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