Why Iridium Stock Just Blasted 11% Higher
Iridium Communications (NASDAQ: IRDM) stock soared 11.1% through 12:05 p.m. ET Tuesday after the company reported a big earnings beat despite missing slightly on sales this morning.
Heading into earnings, analysts forecast the satellite communications company would do $201.8 million in sales but earn only $0.17 per share on those sales. In fact, sales came in a bit short at $201.1 million -- but profits were a big $0.27 per share, beating Wall Street forecasts by a dime.
Iridium earnings were terrific, not only beating estimates but reversing the company's year-ago loss of $0.24 per share. True, the company explained that "net income primarily benefited from a year-over-year decrease in depreciation expense associated with the extension of the estimated useful lives of the Company's satellites and the prior year write-off of the Company's remaining ground spare."
Source Fool.com
