The 10-second takeaway
For the quarter ended June 30 (Q2), InterDigital met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
InterDigital tallied revenue of $71.9 million. The three analysts polled by S&P Capital IQ expected a top line of $71.3 million on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $69.9 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 $0.22. The three earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS of $0.22 for Q2 were 41% lower than the prior-year quarter's $0.37 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 63.5%, 1,250 basis points worse than the prior-year quarter. Operating margin was 24.5%, 1,820 basis points worse than the prior-year quarter. Net margin was 13.5%, 1,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $68.8 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $277.0 million. The average EPS estimate is $1.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,231 members rating the stock outperform, and 46 members rating it underperform. Among 260 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give InterDigital a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InterDigital is hold, with an average price target of $35.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.