Iridium Q4 FY12/24 Earnings Review

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Jigsaw Piece?

by Alex King, CEO, Cestrian Capital Research, Inc.

Iridium doesn’t offer the fastest satellite internet service in the world. It doesn’t offer the highest-throughput service for video broadcast. And it isn’t the next generation hero to which your cellphone will bond. But it does operate a high margin business, growing revenues at a solid clip, with a leveraged-buyback method of supporting the stock price. It’s basically a leveraged buyout with a traded ticker. And I suspect its story ends with a bigger friend buying it entirely.

Satcom I suspect is going to go through some consolidation and capex re-upping as an industry. Like it or not, Starlink is now politicized and that means opportunity for some. I would expect to see Eutelsat and others seek to capitalize on this. Perhaps Iridium features in an M&A plan somewhere in this industry flux.

It was a good quarter for Iridium.

Leverage is climbing as the share count falls.

Let's take a look at the numbers, valuation, stock chart and potential price targets.