The only surprise that i can see to EPS is how the cotinuing collection of licensing fees from Infineon[?] or whoever can now be treated? IDCC has been getting paid this year by someone in lieu of some agreement.I think its now paid up to $20M..paid to IDCC but so far not recognized.
If that is recognized that would be a surprise and add about .40 to this years EPS.
I have never liked their revenue recognition practices. I do know the rule of thumb is to err on the side of conservatism. But if the company being licensed is using that IP in the quarter being reported, then the unearned revenues should be accrued in that quarter.
new earnings estimate has been adjusted from Shuttleworth down to 41 cents, so avg. is now 39 cents for 3Q 2011 :
Earnings Watch: InterDigital is Scheduled to Report its Quarterly Results in 3 Days (IDCC) Published on Mon, 10/24/2011 - 09:20 By Adrienne Chilton in Earnings Preview, IDCC, earnings previews, interdigital, nasdaq:idcc
Analysts, on average, expect InterDigital (NASDAQ:IDCC) to report earnings of $0.39 per share on sales of $71.1 million on October 27th, 2011. Analysts also expect earnings of $2.16 per share for the current full-year period. In the year-ago period, the company reported earnings of $0.79 per share on sales of $91.9 million. In the previous quarter, the company reported earnings of $0.37 per share, missing consensus estimates of $0.41.
InterDigital has overhead space with shares priced $48.59, or 43.8% below the average consensus analyst price target of $86.50. The stock should run into initial resistance at its 200-day moving average (MA) of $50.73 and subsequent resistance at its 50-day MA of $58.92.
Over the past year, InterDigital has traded in a range of $29.08 to $82.50 and is now at $48.59, 67% above that low. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has declined 3.6%.
InterDigital, Inc. develops technology for advanced digital wireless telecommunications applications. The Company offers both time division multiple access and wide band code division multiple access proprietary and standards compliant digital wireless technology to customers, licensees, and companies. By Adrienne Chilton email@example.com