By Sarina Isaacs

Shares of Iridium Communications slipped after the company issued a warning on the impact of tariffs on its equipment margins.

The stock was recently down 6.6% at $21.68, extending its year-to-date loss to about 25%. It touched a 52-week low of $19.91 earlier in the session.

The McLean, Va.-based company, which operates a mobile voice and data-satellite communication network, on Tuesday reported first-quarter profit of $30.4 million, or 27 cents a share. That topped year-earlier income of $19.7 million, or 16 cents a share, as well as the average analyst estimate of 22 cents a share, according to FactSet.

Revenue rose 5.4% to $214.9 million, also beating Wall Street expectations for $210.8 million.

Looking ahead to the full year, however, Chief Executive Matt Desch said, "With new tariffs and U.S. trade policies still in flux, we expect to incur incremental equipment costs this year."

The company added that it expects equipment sales to be in line with 2024 numbers, but that margin may be impacted by the import tariffs.

Iridium otherwise reiterated its full-year guidance for service-revenue growth of 5% to 7%, compared with 2024's $614.9 million. It also expects operating earnings before interest, taxes, depreciation and amortization at between $490 million and $500 million, up from $470.6 million in 2024.

Write to Sarina Isaacs at sarina.isaacs@wsj.com

(END) Dow Jones Newswires

April 22, 2025 11:54 ET (15:54 GMT)

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