InterDigital (Nasdaq: IDCC) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), InterDigital met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share didn't change.

Gross margins contracted, operating margins dropped, net margins increased.

Revenue details
InterDigital logged revenue of $67.7 million. The four analysts polled by S&P Capital IQ expected revenue of $68.2 million on the same basis. GAAP reported sales were 5.8% lower than the prior-year quarter's $71.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The three earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.22 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.0%, much worse than the prior-year quarter. Operating margin was 18.7%, 580 basis points worse than the prior-year quarter. Net margin was 13.6%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $46.6 million. On the bottom line, the average EPS estimate is -$0.22.

Next year's average estimate for revenue is $211.4 million. The average EPS estimate is -$0.48.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,188 members out of 1,235 rating the stock outperform, and 47 members rating it underperform. Among 293 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 give InterDigital a green thumbs-up, and 10 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 $47.00.

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