Iridium (IRDM) Satcom Acquired by Sumitomo based in Japan

Iridium Communications IRDM satellite communication or Satcom is used by Sumitomo Construction Machinery Co Ltd for its Link Belt excavators or LBX.

Japan-based Sumitomo Construction specializes in designing and manufacturing construction machinery. Sumitomo’s Link-Belt RemoteCARE management tool integrates GPS technology with telematics data to enable remote monitoring of machine performance, Iridium added.

The implementation of Iridium satcom with LBX gives Sumitomo real-time global connectivity. The company will also have strong two-way communications for key machine data such as location tracking, regular maintenance reports, and 24-hour security and geofencing capabilities.

Sumitomo also implemented Iridium’s Short Burst Data (“SBD”) service on its RemoteCARE service platform in North America. The company eventually plans to implement SBD across its global operations.

Iridium Communications Inc. Price and Consensus

Iridium Communications Inc. Price Consensus Chart | Quote from Iridium Communications Inc

Bright prospects for Iridium

Headquartered in McLean, VA, Iridium is the only satellite communications company offering dedicated commercial global voice and data communications.

Iridium’s performance benefits from the expansion of its subscriber base driven by demand for consumer-facing devices. The company expects commercial services revenue to benefit from growth in IoT, ongoing activations and solid uptake of the company’s broadband services. It offers cost-effective broadband services through its Certus technology and maintains strategic relationships with government organizations. Iridium’s cellular and satellite network uses the interconnected mesh architecture of 66 satellites to provide service in all areas.

In the last reporting quarter The company posted revenue of $155.9 million, up 6.4% from the same quarter last year. The driving factors were strong handset sales and higher service revenues.

Total service revenue increased 8.5% to $126.7 million from $116.9 million in the year-ago quarter. The benefit comes from strong revenue from a growing subscriber base. Service revenue contributed 81% of total revenue in the fourth quarter. Solid performance in broadband, commercial voice and data, and IoT also played a part.

During the most recent reporting quarter, Iridium’s commercial IoT subscribers grew 24% year-over-year to 1,193,000 customers.

Zacks rank and other key tips

Iridium currently carries a Zacks Rank #2 (Buy).

Some other high-ranking stocks worth considering from the broader technology sector are Broadcom AVGO, Apple AAPL and Texas Instruments TXN. Apple and Texas Instruments have a Zacks Rank #1 (Strong Buy), while Broadcom currently has a Zacks Rank of 2. You can see see the full list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus estimate for Broadcom’s fiscal 2022 earnings is set at $35.49 per share. AVGO’s long-term earnings growth rate is set at 14.5%.

Broadcom’s earnings beat the Zacks Consensus estimate in all of the previous four quarters, averaging 1.9%. AVGO shares are up 30.8% over the past year.

The Zacks Consensus estimate for Apple’s fiscal 2022 earnings is set at $6.16 per share. The long-term earnings growth rate is set at 12.5%.

Apple’s earnings beat the Zacks Consensus estimate in each of the last four quarters, averaging 20.3%. Shares of AAPL are up 32.4% over the past year.

Zacks consensus estimate for Texas Instruments earnings in 2022 is set at $9.09 per share. The long-term earnings growth rate is 9.3%.

Texas Instruments’ earnings have beaten Zack’s consensus estimate in each of the last four quarters, averaging 12.4%. Shares of TXN are up 1.1% over the past year.

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