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InterDigital (IDCC) Unveils Preliminary Results for Q4
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InterDigital, Inc. (IDCC - Free Report) has issued preliminary results for the fourth quarter of 2022.
Net Income
InterDigital expects net income for the fourth quarter of 2022 to be approximately $28 million. The company anticipates earnings per share (EPS) to be 93 cents, in line with the Zacks Consensus Estimate and 23 cents higher than the prior-year quarter’s levels. IDCC projects net non-operating income at $1 million.
Revenues
The company expects fourth-quarter revenues to be approximately $114 million, higher than the previous expectation of $98-$102 million. It includes recurring revenues of $101 million. The higher revenue expectations are mainly induced by new agreements signed in the second half of the quarter. The revenue expectation is likely to beat the Zacks Consensus Estimate of $101 million.
Other Details
Updating its earlier estimate of $76-$79 million, the company now anticipates operating expenses to be roughly $79 million. Adjusted EBIDTA, is approximated at $60 million.
Cash Flow & Liquidity
As of December 31, 2022, the company anticipates $1.2 billion in cash and cash equivalents, restricted cash and short-term investments, including about $400 million in customer receipts during the fourth quarter.
These preliminary results represent the firm's current estimations as of the date of this release. They are subject to further revisions after the company completes its customary quarter and year-end closing procedures.
InterDigital has been working on expanding its revenue base through continuous development, commercialization and licensing of technology projects, which in turn tend to put pressure on margins. The company faces substantial competitive pressure and thus needs to work on product quality and customer service.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development (R&D) capabilities, technological know-how and rich industry experience.
The stock has lost 8.3% in the past year compared with the industry’s decline of 21.6%.
Motorola Solutions, Inc. (MSI - Free Report) , sporting a Zacks Rank #2, as a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Motorola witnessed a healthy demand for video security products and services during third-quarter 2022. It remains well poised to maintain this growth momentum with a diversified portfolio. Quarterly net sales were at a record high of $2,373 million, up 12.6% year over year due to higher demand in the Americas. The upside can be attributed to strength of its business model and the value of its mission-critical integrated ecosystem.
Juniper Networks (JNPR - Free Report) , sporting a Zacks Rank #2, Juniper is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Our estimates show that revenues from cloud verticals are likely to grow in excess of 13% in fourth-quarter 2022. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.
Juniper reported solid third-quarter 2022 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. Juniper’s quarterly revenues increased to $1,414.6 million from $1,188.8 million in the prior-year quarter, led by strong demand across all customer verticals and all customer solutions. The top line beat the consensus estimate of $1,351 million.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #2, Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience.
Despite supply chain disruptions, total revenues soared 57.2% year over year to $1,176.8 million. The top line surpassed the company’s guidance of $1,025-$1,075 million and exceeded the consensus estimate of $1,060 million. The record revenues were primarily led by solid customer additions and growth in the enterprise vertical, along with accelerated shipments to cloud titan customers that were mostly deferred from the previous quarter.
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InterDigital (IDCC) Unveils Preliminary Results for Q4
InterDigital, Inc. (IDCC - Free Report) has issued preliminary results for the fourth quarter of 2022.
Net Income
InterDigital expects net income for the fourth quarter of 2022 to be approximately $28 million. The company anticipates earnings per share (EPS) to be 93 cents, in line with the Zacks Consensus Estimate and 23 cents higher than the prior-year quarter’s levels. IDCC projects net non-operating income at $1 million.
Revenues
The company expects fourth-quarter revenues to be approximately $114 million, higher than the previous expectation of $98-$102 million. It includes recurring revenues of $101 million. The higher revenue expectations are mainly induced by new agreements signed in the second half of the quarter. The revenue expectation is likely to beat the Zacks Consensus Estimate of $101 million.
Other Details
Updating its earlier estimate of $76-$79 million, the company now anticipates operating expenses to be roughly $79 million. Adjusted EBIDTA, is approximated at $60 million.
Cash Flow & Liquidity
As of December 31, 2022, the company anticipates $1.2 billion in cash and cash equivalents, restricted cash and short-term investments, including about $400 million in customer receipts during the fourth quarter.
These preliminary results represent the firm's current estimations as of the date of this release. They are subject to further revisions after the company completes its customary quarter and year-end closing procedures.
InterDigital has been working on expanding its revenue base through continuous development, commercialization and licensing of technology projects, which in turn tend to put pressure on margins. The company faces substantial competitive pressure and thus needs to work on product quality and customer service.
InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development (R&D) capabilities, technological know-how and rich industry experience.
The stock has lost 8.3% in the past year compared with the industry’s decline of 21.6%.
Image Source: Zacks Investment Research
InterDigital currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Motorola Solutions, Inc. (MSI - Free Report) , sporting a Zacks Rank #2, as a leading provider of mission-critical communication products and services worldwide, Motorola has ensured a steady revenue stream from this niche market. The communications equipment maker intends to boost its position in the public safety domain by entering into strategic alliances with other players in the ecosystem.
Motorola witnessed a healthy demand for video security products and services during third-quarter 2022. It remains well poised to maintain this growth momentum with a diversified portfolio. Quarterly net sales were at a record high of $2,373 million, up 12.6% year over year due to higher demand in the Americas. The upside can be attributed to strength of its business model and the value of its mission-critical integrated ecosystem.
Juniper Networks (JNPR - Free Report) , sporting a Zacks Rank #2, Juniper is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Our estimates show that revenues from cloud verticals are likely to grow in excess of 13% in fourth-quarter 2022. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.
Juniper reported solid third-quarter 2022 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. Juniper’s quarterly revenues increased to $1,414.6 million from $1,188.8 million in the prior-year quarter, led by strong demand across all customer verticals and all customer solutions. The top line beat the consensus estimate of $1,351 million.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #2, Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience.
Despite supply chain disruptions, total revenues soared 57.2% year over year to $1,176.8 million. The top line surpassed the company’s guidance of $1,025-$1,075 million and exceeded the consensus estimate of $1,060 million. The record revenues were primarily led by solid customer additions and growth in the enterprise vertical, along with accelerated shipments to cloud titan customers that were mostly deferred from the previous quarter.