InterDigital Earnings: Here’s Why the Stock is Down Now

InterDigital, Inc. (NASDAQ:IDCC) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.73%.

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InterDigital, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.3 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 32.32% to $46.91 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: InterDigital, Inc. reported adjusted EPS loss of $0.3 per share. By that measure, the company missed the mean analyst estimate of $-0.2. It beat the average revenue estimate of $46.2 million.

Quoting Management: “The quarter came in as we expected. The business continues to deliver strong free cash flow, but revenue was affected by the expiration of the 2009 Samsung patent license agreement, though that roll-off was partially offset by the new license agreement with Sony,” stated William J. Merritt, President and Chief Executive Officer. “In addition, although it did not impact our first quarter financial results, we recently filed to confirm a $30 million award from an international arbitration tribunal related to one of our patent license agreements. We remain committed to delivering strong financial results for the full year, as reflected by the level of patent enforcement activity in the quarter, as well as other key initiatives taken during the quarter.”

Key Stats (on next page)…

Revenue decreased 46.62% from $87.88 million in the previous quarter. EPS decreased to $-0.3 in the quarter versus EPS of $0.57 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.25 to a loss $0.17. For the current year, the average estimate has moved up from a loss of $1.15 to a loss of $0.71 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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