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InterDigital, Inc. (IDCC - Free Report) reported healthy first-quarter 2021 results, wherein both the bottom and the top lines beat the respective Zacks Consensus Estimate.
This Wilmington, DE-based wireless R&D company’s share price moved up 1.4% on May 6, closing the trading session at $69.32.
Net Income
Net income in the March quarter was $5.6 million or 18 cents per share compared with $116K in the prior-year quarter. The improvement was largely driven by higher operating income and lower interest. Also, the bottom line beat the Zacks Consensus Estimate by 19 cents, delivering a surprise of 1,900%.
InterDigital, Inc. Price, Consensus and EPS Surprise
Quarterly total revenues grew to $82.4 million from $76.2 million in the prior-year quarter. The growth shows that InterDigital is benefiting from a more diverse licensing program, along with the strength of its operating model. Also, the top line surpassed the consensus estimate of $80 million.
While total revenues from patent royalties equaled $80.2 million, the same from current technology solutions was $2.2 million. Recurring revenues were $78.6 million compared with $75.5 million a year ago.
The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets.
Other Details
Total operating expenses declined to $70.4 million from $71.5 million in the prior-year quarter. This resulted from lower patent administration and licensing expenses, and SG&A expenses. Operating income improved to $12 million from $4.7 million, driven by higher revenues and lower operating expenses.
Cash Flow & Liquidity
During the first quarter, InterDigital utilized $9.8 million of cash from operating activities compared with cash utilization of $26.9 million in the year-ago quarter.
Free cash flow was a negative $19.8 million compared with a negative $34.7 million a year ago. The change was primarily driven by the timing of collections under fixed-fee agreements.
As of Mar 31, 2021, the company had $884.7 million in cash, cash equivalents and short-term investments with $463.9 million of long-term debt and other liabilities. This compares with the respective tallies of $926.6 million and $415.9 million at the end of the previous quarter.
Zacks Rank & Stocks to Consider
InterDigital currently has a Zacks Rank #4 (Sell).
Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.
Cogent delivered a trailing four-quarter earnings surprise of 29%, on average.
Western Digital delivered a trailing four-quarter earnings surprise of 26.3%, on average.
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Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
InterDigital (IDCC) Beats Q1 Earnings & Revenue Estimates
InterDigital, Inc. (IDCC - Free Report) reported healthy first-quarter 2021 results, wherein both the bottom and the top lines beat the respective Zacks Consensus Estimate.
This Wilmington, DE-based wireless R&D company’s share price moved up 1.4% on May 6, closing the trading session at $69.32.
Net Income
Net income in the March quarter was $5.6 million or 18 cents per share compared with $116K in the prior-year quarter. The improvement was largely driven by higher operating income and lower interest. Also, the bottom line beat the Zacks Consensus Estimate by 19 cents, delivering a surprise of 1,900%.
InterDigital, Inc. Price, Consensus and EPS Surprise
InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote
Revenues
Quarterly total revenues grew to $82.4 million from $76.2 million in the prior-year quarter. The growth shows that InterDigital is benefiting from a more diverse licensing program, along with the strength of its operating model. Also, the top line surpassed the consensus estimate of $80 million.
While total revenues from patent royalties equaled $80.2 million, the same from current technology solutions was $2.2 million. Recurring revenues were $78.6 million compared with $75.5 million a year ago.
The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets.
Other Details
Total operating expenses declined to $70.4 million from $71.5 million in the prior-year quarter. This resulted from lower patent administration and licensing expenses, and SG&A expenses. Operating income improved to $12 million from $4.7 million, driven by higher revenues and lower operating expenses.
Cash Flow & Liquidity
During the first quarter, InterDigital utilized $9.8 million of cash from operating activities compared with cash utilization of $26.9 million in the year-ago quarter.
Free cash flow was a negative $19.8 million compared with a negative $34.7 million a year ago. The change was primarily driven by the timing of collections under fixed-fee agreements.
As of Mar 31, 2021, the company had $884.7 million in cash, cash equivalents and short-term investments with $463.9 million of long-term debt and other liabilities. This compares with the respective tallies of $926.6 million and $415.9 million at the end of the previous quarter.
Zacks Rank & Stocks to Consider
InterDigital currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader industry are Vicor Corporation (VICR - Free Report) , Cogent Communications Holdings, Inc. (CCOI - Free Report) and Western Digital Corporation (WDC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.
Cogent delivered a trailing four-quarter earnings surprise of 29%, on average.
Western Digital delivered a trailing four-quarter earnings surprise of 26.3%, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>