InterDigital Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

InterDigital (NAS: IDCC) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), InterDigital met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
InterDigital tallied revenue of $71.9 million. The three analysts polled by S&P Capital IQ expected a top line of $71.3 million on the same basis. GAAP reported sales were 2.9% higher than the prior-year quarter's $69.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The three earnings estimates compiled by S&P Capital IQ averaged $0.30 per share. GAAP EPS of $0.22 for Q2 were 41% lower than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.5%, 1,250 basis points worse than the prior-year quarter. Operating margin was 24.5%, 1,820 basis points worse than the prior-year quarter. Net margin was 13.5%, 1,110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $68.8 million. On the bottom line, the average EPS estimate is $0.23.

Next year's average estimate for revenue is $277.0 million. The average EPS estimate is $1.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,231 members rating the stock outperform, and 46 members rating it underperform. Among 260 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 246 give InterDigital a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on InterDigital is hold, with an average price target of $35.20.

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The article InterDigital Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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