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InterDigital (IDCC) Preliminary Q4 Results Show Earnings Growth
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InterDigital, Inc. (IDCC - Free Report) released preliminary fourth-quarter 2023 results. The selective preliminary metrics offer clarity regarding the company's operations and shed light on the first-quarter 2024 outlook.
In the fiscal fourth quarter, InterDigital is likely to have generated revenues of $105 million. The net sales figure is aligned with company guidance and mainly includes recurring revenues. The company is likely to release a value allowance as it is optimistic about realizing the benefits of deferred tax assets in some foreign jurisdictions.
Owing to these factors, IDCC is likely to have recorded a GAAP net income of $34 million, indicating a significant increase from the earlier estimate of $18-$21 million. The earnings per share is expected at $1.20, up from 70-80 cents anticipated earlier. Higher litigation costs and performance-based compensation are likely to have increased the operating expenses to $81 million, up from the earlier expected range of $77-$79 million.
The company is expected to have registered a non-GAAP net income of $36 million or $1.34 per share, exceeding the prior estimates of $31-$34 million and $1.17-$1.29, respectively. Adjusted EBITDA is likely to be at the higher end of the company guidance at $52 million.
For the first quarter of 2024, InterDigital forecasts net sales in the range of $245-$255 million, including $152-$160 million from catch-up revenues. Net income is estimated between $70-$85 million or $2.50-$3.00 per share. Operating expenses are anticipated in the band of $146-$154 million, including revenue share expense of $66-$69 million.
Notably, InterDigital recently inked a patent license agreement with Samsung, the largest TV manufacturer and industry leader in consumer electronics. The agreement grants Samsung license to various technologies, including HEVC, VVC, Wi-Fi and ATSC 3.0 for computer display monitors and digital TVs.
InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company’s team of skilled engineers has expertise in major mobile connectivity, as well as in technologies related to content delivery. Notably, its secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage IoT applications.
The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. InterDigital 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 capabilities, technological know-how and rich industry experience.
The stock has gained 75.2% in the past year compared with the industry’s growth of 4.9%.
Image Source: Zacks Investment Research
InterDigital currently carries a Zacks Rank #2 (Buy).
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely 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. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It 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.
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InterDigital (IDCC) Preliminary Q4 Results Show Earnings Growth
InterDigital, Inc. (IDCC - Free Report) released preliminary fourth-quarter 2023 results. The selective preliminary metrics offer clarity regarding the company's operations and shed light on the first-quarter 2024 outlook.
In the fiscal fourth quarter, InterDigital is likely to have generated revenues of $105 million. The net sales figure is aligned with company guidance and mainly includes recurring revenues. The company is likely to release a value allowance as it is optimistic about realizing the benefits of deferred tax assets in some foreign jurisdictions.
Owing to these factors, IDCC is likely to have recorded a GAAP net income of $34 million, indicating a significant increase from the earlier estimate of $18-$21 million. The earnings per share is expected at $1.20, up from 70-80 cents anticipated earlier. Higher litigation costs and performance-based compensation are likely to have increased the operating expenses to $81 million, up from the earlier expected range of $77-$79 million.
The company is expected to have registered a non-GAAP net income of $36 million or $1.34 per share, exceeding the prior estimates of $31-$34 million and $1.17-$1.29, respectively. Adjusted EBITDA is likely to be at the higher end of the company guidance at $52 million.
For the first quarter of 2024, InterDigital forecasts net sales in the range of $245-$255 million, including $152-$160 million from catch-up revenues. Net income is estimated between $70-$85 million or $2.50-$3.00 per share. Operating expenses are anticipated in the band of $146-$154 million, including revenue share expense of $66-$69 million.
Notably, InterDigital recently inked a patent license agreement with Samsung, the largest TV manufacturer and industry leader in consumer electronics. The agreement grants Samsung license to various technologies, including HEVC, VVC, Wi-Fi and ATSC 3.0 for computer display monitors and digital TVs.
InterDigital is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company’s team of skilled engineers has expertise in major mobile connectivity, as well as in technologies related to content delivery. Notably, its secure and scalable horizontal platform, oneMPOWER, enables businesses to launch and manage IoT applications.
The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. InterDigital 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 capabilities, technological know-how and rich industry experience.
The stock has gained 75.2% in the past year compared with the industry’s growth of 4.9%.
Image Source: Zacks Investment Research
InterDigital currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
NVIDIA Corporation (NVDA - Free Report) , currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Workday Inc. (WDAY - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely 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. Arista has delivered an earnings surprise of 12%, on average, in the trailing four quarters.
The company holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. It 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.