InterDigital (Nasdaq: IDCC) is expected to report Q3 earnings on Oct. 24. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict InterDigital's revenues will increase 465.3% and EPS will grow 884.2%.
The average estimate for revenue is $432.2 million. On the bottom line, the average EPS estimate is $5.61.
Revenue details
Last quarter, InterDigital reported revenue of $71.9 million. 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 details
Last quarter, EPS came in at $0.22. 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.
Recent performance
For the preceding 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.
Looking ahead
The full year's average estimate for revenue is $639.3 million. The average EPS estimate is $6.01.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,202 members out of 1,249 rating the stock outperform, and 47 members rating it underperform. Among 267 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 254 give InterDigital a green thumbs-up, and 13 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 $35.20.
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