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InterDigital (IDCC) Q4 Earnings Beat on Top-Line Growth
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InterDigital, Inc. (IDCC - Free Report) reported healthy fourth-quarter 2022 results, with both the bottom line and top line beating the respective Zacks Consensus Estimate. The company expects this growth momentum to continue in the forthcoming quarters.
Net Income
Net income in the December quarter was $32.4 million or $1.08 per share compared with $21.9 million or 70 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 16 cents.
In 2022, net income improved to $93.7 million or $3.07 per share from $55.3 million or $1.77 per share in 2021 on top-line expansion and lower operating expenses.
Total revenues in the quarter improved to $117.1 million from $111.8 million in the prior-year quarter, reflecting continuous licensing momentum. The top line beat the consensus estimate of $108 million. In 2022, total revenues aggregated $457.8 million compared with $425.4 million in 2021.
Recurring revenues in the fourth quarter were $103.6 million, up from $101.6 million a year ago. The year-over-year increase was primarily driven by new patent license agreements inked during the quarter. InterDigital exhibited continuing licensing momentum and strength in its recurring revenue base.
Total operating expenses decreased to $78.5 million from $86.2 million in the prior-year quarter, resulting in an operating income of $38.6 million and $25.6 million, respectively.
Cash Flow & Liquidity
In 2022, InterDigital generated $286 million of cash from operating activities compared with $130.4 million in 2021. As of Dec 31, 2022, the company had $693.5 million in cash and cash equivalents with $607.1 million of long-term debt compared with respective tallies of $706.3 million and $422.7 million in the prior-year period.
Q1 View
For the first quarter of 2023, InterDigital expects recurring revenues to be between $94 million and $98 million. Total operating expenses are expected to lie within $75-$79 million.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely to benefit from the 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. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Viavi Solutions Inc. (VIAV - Free Report) , carrying a Zacks Rank #2, is a key pick. Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. The product portfolio of the company offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks.
Viavi also offers high-performance thin film optical coatings for light-management solutions used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. It delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, is another key pick. Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
It delivered a trailing four-quarter earnings surprise of 212.7%, on average. T-Mobile has a long-term earnings growth expectation of 67.6%.
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InterDigital (IDCC) Q4 Earnings Beat on Top-Line Growth
InterDigital, Inc. (IDCC - Free Report) reported healthy fourth-quarter 2022 results, with both the bottom line and top line beating the respective Zacks Consensus Estimate. The company expects this growth momentum to continue in the forthcoming quarters.
Net Income
Net income in the December quarter was $32.4 million or $1.08 per share compared with $21.9 million or 70 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 16 cents.
In 2022, net income improved to $93.7 million or $3.07 per share from $55.3 million or $1.77 per share in 2021 on top-line expansion and lower operating expenses.
InterDigital, Inc. Price and EPS Surprise
InterDigital, Inc. price-eps-surprise | InterDigital, Inc. Quote
Quarter Details
Total revenues in the quarter improved to $117.1 million from $111.8 million in the prior-year quarter, reflecting continuous licensing momentum. The top line beat the consensus estimate of $108 million. In 2022, total revenues aggregated $457.8 million compared with $425.4 million in 2021.
Recurring revenues in the fourth quarter were $103.6 million, up from $101.6 million a year ago. The year-over-year increase was primarily driven by new patent license agreements inked during the quarter. InterDigital exhibited continuing licensing momentum and strength in its recurring revenue base.
Total operating expenses decreased to $78.5 million from $86.2 million in the prior-year quarter, resulting in an operating income of $38.6 million and $25.6 million, respectively.
Cash Flow & Liquidity
In 2022, InterDigital generated $286 million of cash from operating activities compared with $130.4 million in 2021. As of Dec 31, 2022, the company had $693.5 million in cash and cash equivalents with $607.1 million of long-term debt compared with respective tallies of $706.3 million and $422.7 million in the prior-year period.
Q1 View
For the first quarter of 2023, InterDigital expects recurring revenues to be between $94 million and $98 million. Total operating expenses are expected to lie within $75-$79 million.
Zacks Rank & Other Stocks to Consider
InterDigital currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2 (Buy), is likely to benefit from the 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. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 12.7%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Viavi Solutions Inc. (VIAV - Free Report) , carrying a Zacks Rank #2, is a key pick. Headquartered in Scottsdale, AZ, Viavi is a leading provider of network test, monitoring and service enablement solutions to diverse sectors across the globe. The product portfolio of the company offers end-to-end network visibility and analytics that help build, test, certify, maintain, and optimize complex physical and virtual networks.
Viavi also offers high-performance thin film optical coatings for light-management solutions used in anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. It delivered an earnings surprise of 9.1%, on average, in the trailing four quarters.
T-Mobile US, Inc. (TMUS - Free Report) , carrying a Zacks Rank #2, is another key pick. Headquartered in Bellevue, WA, T-Mobile is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
It delivered a trailing four-quarter earnings surprise of 212.7%, on average. T-Mobile has a long-term earnings growth expectation of 67.6%.