Please ensure Javascript is enabled for purposes of website accessibility

Coming Soon: InterDigital Earnings

By Seth Jayson – Updated Apr 10, 2017 at 1:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

InterDigital (Nasdaq: IDCC) is expected to report Q1 earnings on April 25. 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 contract -33.2% and EPS will shrink to a loss.

The average estimate for revenue is $46.3 million. On the bottom line, the average EPS estimate is -$0.20.

Revenue details
Last quarter, InterDigital booked revenue of $87.9 million. 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 details
Last quarter, non-GAAP EPS came in at $0.57. 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.

Recent performance
For the preceding quarter, gross margin was 64.4%, 810 basis points worse than the prior-year quarter. Operating margin was 35.7%, much worse than the prior-year quarter. Net margin was 17.7%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $208.3 million. The average EPS estimate is -$0.66.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,194 members out of 1,240 rating the stock outperform, and 46 members rating it underperform. Among 292 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 281 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 hold, with an average price target of $39.00.

Internet software and services are being consumed in radically different ways, on increasingly mobile devices. Does InterDigital fit in anymore? Check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

Stocks Mentioned

InterDigital Stock Quote
$49.18 (-1.78%) $0.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.