InterDigital Inc (IDCC)

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From the IBD

STOCK SPOTLIGHT
Can Hot Tech Stock Extend Profit, Price Gains?
InterDigital, one of 2016's biggest tech winners, is expected to post triple-digit earnings growth for Q4. (Kris Tripplaar/Sipa USA/Newscom)
InterDigital, one of 2016's biggest tech winners, is expected to post triple-digit earnings growth for Q4. (Kris Tripplaar/Sipa USA/Newscom)
NANCY GONDO1/20/2017
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InterDigital (IDCC) is poised to extend triple-digit sales and profit gains for a second straight quarter when it reports Q4 results.

Analysts expect the Wilmington, Del.-based company's earnings to surge 317% to $3.84 a share on a 135% sales jump to $263.9 million. In Q3, EPS soared 340% on 107% higher revenue.

The wireless modem maker on Dec. 15 boosted its Q4 sales outlook to a range of $258 million to $268 million, up from its prior guidance for $95 million to $99 million, citing recurring revenue. The same day, it also announced a multiyear patent license agreement with Apple (AAPL). Shares spiked nearly 16% intraday on the news, before settling for a 7% pop.

The stock has been trading mostly sideways since and could be forming a new flat base as it consolidates earlier gains. InterDigital's 86% rally last year put it among the top tech stock price performers of 2016. It's recouped all its losses and then some from a 14% plunge on Oct. 27, when its earnings fell short of views.

IBD'S TAKE: InterDigital is featured in this week's Tech Leaders column as one of four top stocks with the biggest EPS growth forecasts. Find out which other companies made the list here.

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Be especially cautious of buying stocks during earnings season, since results can cause unexpected volatility in price action.

In other news, InterDigital on Dec. 20 announced its acquisition of Hillcrest Labs, a sensor processing technology company, for undisclosed terms. Hillcrest's technology is used in virtual reality systems, gaming systems, wearable devices, smartphones and other areas.

InterDigital, which develops mobile technologies used in digital cellular and wireless devices and networks, could see further growth stemming from the upcoming 5G high-speed wireless network rollout. Patent licensing accounted for 98% of 2015 revenue, with major customers including Intel (INTC), Samsung and Sony (SNE).
http://www.investors.com/stock-lists/stock-spotlight/can-hot-tech-stock-extend-profit-price-gains/