Wireless-technology purveyor and Motley Fool Stock Advisor recommendation InterDigital Communications
What analysts say:
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Buy, sell, or waffle? Of the six analysts tracking InterDigital, four of them rate the stock a buy, while one says hold the phone, and one analyst currently recommends selling. In our Motley Fool CAPS investor database, more than 560 of our 50,000 total users have rated the stock, and overall, it gets a big thumbs up, with a five-star rating, the highest possible.
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Revenues. Since the company guided for revenue between $67 million and $68 million, the analysts took the hint and on average look for InterDigital to report $67.4 million in revenue this quarter, up 31% from last year.
- Earnings. The average analyst is expecting $0.32 per share in earnings, 39% higher than the $0.23 reported a year ago.
What management says:
While InterDigital continues to generate cash from licensing its patents to wireless industry giants such as Ericsson
What management does:
You've got to love a company that can churn out margins like this. Licensing companies such as InterDigital and Qualcomm
9/05 |
12/05 |
3/06 |
6/06 |
9/06 |
12/06 |
|
---|---|---|---|---|---|---|
Gross |
70.2% |
69.7% |
73.1% |
88.4% |
89.2% |
89.4% |
Operating |
12.1% |
12.1% |
21.9% |
66.9% |
68.7% |
70.0% |
Net |
6.1% |
33.5% |
38.2% |
53.7% |
54.8% |
46.9% |
One Fool says:
A good amount of future revenue growth is riding on InterDigital's development efforts on an application-specific integration circuit (ASIC) for the data-card market. The wireless-semiconductors business is a tough one, dominated by larger, entrenched rivals such as Broadcom
Call up more Foolishness:
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For the record, Fool contributor Dave Mock has never publicly confessed to double dipping. He owns shares of Qualcomm. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy always washes before dinner.