Iridium Communications reports $225.2 million in Q2 revenue, beating forecasts, but $0.09 EPS misses estimates due to acquisition-related expenses.
Iridium Communications Inc. (NASDAQ:IRDM) posted second-quarter revenue of $225.2 million, up 4% year over year and above the $220.6 million estimate. Adjusted earnings per share came in at $0.09, missing the $0.28 consensus forecast as costs tied to its pending acquisition by Rocket Lab weighed on profitability.
Net income fell to $9.7 million, or $0.09 per diluted share, from $22.0 million, or $0.20 per share, in the same period last year. The company cited higher transaction-related expenses for the decline. Service revenue rose 4% to $161.3 million, with commercial service revenue up 4% to $133.7 million and government service revenue increasing 3% to $27.6 million.
Subscriber growth remained strong, with 2.627 million billable subscribers at quarter-end, a 6% increase from a year earlier. Shares of Iridium rose 1.80% in premarket trading following the announcement.