U.S. Markets closed

InterDigital (IDCC) Beats Q1 Earnings & Revenue Estimates

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

InterDigital, Inc. IDCC reported healthy first-quarter 2021 results, wherein both the bottom and the top lines beat the respective Zacks Consensus Estimate.

This Wilmington, DE-based wireless R&D company’s share price moved up 1.4% on May 6, closing the trading session at $69.32.

Net Income

Net income in the March quarter was $5.6 million or 18 cents per share compared with $116K in the prior-year quarter. The improvement was largely driven by higher operating income and lower interest. Also, the bottom line beat the Zacks Consensus Estimate by 19 cents, delivering a surprise of 1,900%.

InterDigital, Inc. Price, Consensus and EPS Surprise

InterDigital, Inc. Price, Consensus and EPS Surprise
InterDigital, Inc. Price, Consensus and EPS Surprise

InterDigital, Inc. price-consensus-eps-surprise-chart | InterDigital, Inc. Quote

Revenues

Quarterly total revenues grew to $82.4 million from $76.2 million in the prior-year quarter. The growth shows that InterDigital is benefiting from a more diverse licensing program, along with the strength of its operating model. Also, the top line surpassed the consensus estimate of $80 million.

While total revenues from patent royalties equaled $80.2 million, the same from current technology solutions was $2.2 million. Recurring revenues were $78.6 million compared with $75.5 million a year ago.

The company is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets.

Other Details

Total operating expenses declined to $70.4 million from $71.5 million in the prior-year quarter. This resulted from lower patent administration and licensing expenses, and SG&A expenses. Operating income improved to $12 million from $4.7 million, driven by higher revenues and lower operating expenses.

Cash Flow & Liquidity

During the first quarter, InterDigital utilized $9.8 million of cash from operating activities compared with cash utilization of $26.9 million in the year-ago quarter.

Free cash flow was a negative $19.8 million compared with a negative $34.7 million a year ago. The change was primarily driven by the timing of collections under fixed-fee agreements.

As of Mar 31, 2021, the company had $884.7 million in cash, cash equivalents and short-term investments with $463.9 million of long-term debt and other liabilities. This compares with the respective tallies of $926.6 million and $415.9 million at the end of the previous quarter.

Zacks Rank & Stocks to Consider

InterDigital currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader industry are Vicor Corporation VICR, Cogent Communications Holdings, Inc. CCOI and Western Digital Corporation WDC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vicor delivered a trailing four-quarter earnings surprise of 80.6%, on average.

Cogent delivered a trailing four-quarter earnings surprise of 29%, on average.

Western Digital delivered a trailing four-quarter earnings surprise of 26.3%, on average.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Western Digital Corporation (WDC) : Free Stock Analysis Report

InterDigital, Inc. (IDCC) : Free Stock Analysis Report

Cogent Communications Holdings, Inc. (CCOI) : Free Stock Analysis Report

Vicor Corporation (VICR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research