What Happened?
Shares of satellite communications provider fell 20% in the afternoon session after the company cut its full-year revenue growth forecast and reported mixed second-quarter financial results. The company lowered its total service revenue growth expectation for 2025 to a range of 3% to 5%, a significant reduction from its prior forecast of 5% to 7%. For the second quarter, Iridium's earnings of 20 cents per share fell short of analyst estimates. While revenue of $216.9 million edged past consensus, net income dropped to $22 million compared to $32.3 million in the same period last year. The company explained this drop was mainly because the prior year's results included a one-time gain from an acquisition that did not repeat in 2025.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Iridium? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Iridium’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Iridium and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.2% as the stock gained ground amid broader positive market sentiment. 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.
Iridium is down 12.5% since the beginning of the year, and at $25.87 per share, it is trading 23% below 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 $972.39.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
