By Shares of Iridium faced a significant drop of nearly 12% after the company reported a loss for the second quarter. The company stated that it will require more time before witnessing substantial direct-to-device sales.
Iridium’s stock plummeted by approximately 12% to $52.88 during morning trading. Despite this setback, the company’s shares have managed to gain around 33% over the past year.
In terms of financial results, Iridium posted a loss of $30.7 million, equivalent to 24 cents per share. This is in stark contrast to the profit of $4.6 million, or four cents a share, achieved during the same period last year. FactSet analysts had estimated a profit of four cents per share.
Though sales saw a growth of 10% to $193.1 million, it fell below the expected $198.4 million projected by FactSet analysts.
During a recent conference call, the Chief Executive of Iridium, Matt Desch, acknowledged that the company will require additional time to generate significant revenue from its direct smartphone and device service offering. He believes that the real opportunity lies in services similar to SOS, which is being pioneered by Apple with the iPhone 14, and that Iridium plans to support these services within the Android ecosystem.
Comments