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Can Higher Revenues Aid InterDigital (IDCC) Q4 Earnings?
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InterDigital, Inc. (IDCC - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 118.4%. It pulled off a stellar trailing four-quarter earnings surprise of 560.3%, on average. The company is expected to have recorded year-over-year higher revenues on the back of license agreements with diverse firms.
Factors at Play
During the fourth quarter, InterDigital witnessed healthy growth momentum in licensing its video technology to leading smartphone manufacturers with more than 800 million licensed devices in 2021. The company made inroads with China-based vendors and inked contracts with Xiaomi, among others. These licensing agreements are expected to have generated solid recurring revenues in the quarter.
InterDigital’s commitment to licensing its broad portfolio of technologies to wireless terminal equipment makers allows it to expand its core market capability. The company is also focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets by leveraging its research and development capabilities, technological know-how and rich industry experience. At the same time, expansion into adjacent technology areas that align with its intellectual property position is likely to have benefited its quarterly performance.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $102 million, which indicates growth of 12.1% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 30 cents, which suggests a solid improvement from a loss of 4 cents per share recorded in the prior-year quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for InterDigital in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 30 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for Akamai Technologies, Inc. (AKAM - Free Report) is +1.65% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.
The Earnings ESP for Applied Materials, Inc. (AMAT - Free Report) is +0.93% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 16.
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Can Higher Revenues Aid InterDigital (IDCC) Q4 Earnings?
InterDigital, Inc. (IDCC - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 118.4%. It pulled off a stellar trailing four-quarter earnings surprise of 560.3%, on average. The company is expected to have recorded year-over-year higher revenues on the back of license agreements with diverse firms.
Factors at Play
During the fourth quarter, InterDigital witnessed healthy growth momentum in licensing its video technology to leading smartphone manufacturers with more than 800 million licensed devices in 2021. The company made inroads with China-based vendors and inked contracts with Xiaomi, among others. These licensing agreements are expected to have generated solid recurring revenues in the quarter.
InterDigital’s commitment to licensing its broad portfolio of technologies to wireless terminal equipment makers allows it to expand its core market capability. The company is also focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets by leveraging its research and development capabilities, technological know-how and rich industry experience. At the same time, expansion into adjacent technology areas that align with its intellectual property position is likely to have benefited its quarterly performance.
For the December quarter, the Zacks Consensus Estimate for revenues is pegged at $102 million, which indicates growth of 12.1% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 30 cents, which suggests a solid improvement from a loss of 4 cents per share recorded in the prior-year quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for InterDigital in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at 30 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
InterDigital, Inc. Price and EPS Surprise
InterDigital, Inc. price-eps-surprise | InterDigital, Inc. Quote
Zacks Rank: InterDigital has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. (ANET - Free Report) is set to release quarterly numbers on Feb 14. It has an Earnings ESP of +0.95% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Akamai Technologies, Inc. (AKAM - Free Report) is +1.65% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Feb 15.
The Earnings ESP for Applied Materials, Inc. (AMAT - Free Report) is +0.93% and it carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Feb 16.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.