The 10-second takeaway
For the quarter ended Dec. 31 (Q4), InterDigital crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share dropped significantly.
Margins dropped across the board.
InterDigital logged revenue of $87.9 million. The two analysts polled by S&P Capital IQ wanted to see net sales of $62.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $77.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.38. The five earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS of $0.38 for Q4 were 22% lower than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 64.4%, 810 basis points worse than the prior-year quarter. Operating margin was 35.7%, 1,040 basis points worse than the prior-year quarter. Net margin was 17.7%, 1,190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $28.2 million. On the bottom line, the average EPS estimate is -$0.31.
Next year's average estimate for revenue is $172.9 million. The average EPS estimate is -$0.69.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,188 members out of 1,233 rating the stock outperform, and 45 members rating it underperform. Among 307 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 296 give InterDigital a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InterDigital is outperform, with an average price target of $39.00.
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