What Happened?
Shares of satellite communications provider jumped 3.2% in the morning session after the stock gained ground amid broader positive market sentiment as investors looked ahead to a busy week of corporate earnings.
Shares appeared to be lifted by a wider market rally, with investors showing increased appetite for equities ahead of a heavy slate of earnings reports from major U.S. companies. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.
After the initial pop the shares cooled down to $31.99, down 0.3% from previous close.
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What Is The Market Telling Us
Iridium’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 12.9% on the news that the company reported mixed first quarter 2025 results. Revenue beat expectations by a narrow margin, though earnings beat by a more convincing amount. In addition, the number of subscribers in the broadband and voice segments fell short of expectations, raising concerns about demand. Zooming out, we think this was a mixed quarter.
Iridium is up 8.2% since the beginning of the year, and at $31.99 per share, it is trading close to its 52-week high of $33.57 from October 2024. Investors who bought $1,000 worth of Iridium’s shares 5 years ago would now be looking at an investment worth $1,187.
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