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Why Iridium Communications Inc. (IRDM) Crashed on Tuesday

We recently published an article titled Gold Miners Dominate Tuesday’s Worst-Performing Stocks. In this article, we are going to take a look at where Iridium Communications Inc. (NASDAQ:IRDM) stands against the other stocks.

Wall Street’s main indices bounced back from a bloodbath on Tuesday as investors gobbled up shares on hopes that the US-China trade tensions can subside.

The Dow Jones rallied by 2.66 percent, the S&P 500 rose by 2.51 percent, and the Nasdaq surged by 2.71 percent.

Despite a broader market optimism, 10 companies, predominantly gold miners, were heavily sold down amid lower gold prices.

To come up with the list, we considered only the stocks with more than $1 billion in market capitalization and $5 million in trading volume.

A technician inspecting a satellite dish, highlighting the Mobile Voice and Data Services scope.

Iridium Communications Inc. (NASDAQ:IRDM)

Iridium Communications Inc. dropped for a third straight day on Tuesday, shedding 6.85 percent to close at $21.61, shunning better earnings performance for the first quarter of the year.

In a statement on Tuesday, Iridium Communications Inc. said that it achieved a 56-percent increase in net income for the January to March period, at $30.4 million from $19.65 million year-on-year.

Operational EBITDA was at $122.1 million, marking a 6-percent increase from $115 million in the prior-year period.

Meanwhile, revenues stood at $214.9 million, consisting of $154.3 million of service revenue and $60.6 million of revenue related to equipment sales and engineering and support projects.

Iridium Communications Inc. said total revenues increased by 5 percent year-on-year.


 

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This article is originally published at Insider Monkey.