Saturday, January 21, 2017 9:48:26 AM
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
FacebookTwitterLinkedInPrintShare Reprints
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.
Get expert annotations, direct access to IBD research and more with a free 2-week Leaderboard trial!
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/
Recent IDCC News
- InterDigital Wins Two CSI Awards for Best Immersive Video and Video Processing Technology • GlobeNewswire Inc. • 09/16/2024 12:30:00 PM
- InterDigital Announces Annual Recurring Revenue Target Of $1 Billion By 2030 • GlobeNewswire Inc. • 09/16/2024 12:00:00 PM
- Interdigital Announces Increase of Regular Quarterly Cash Dividend • GlobeNewswire Inc. • 09/10/2024 12:00:00 PM
- At 6GSymposium, InterDigital to Lead Crucial Discussions on Emerging Use Cases and Avenues Towards 6G Profitability • GlobeNewswire Inc. • 09/09/2024 08:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/06/2024 08:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/05/2024 08:01:37 PM
- InterDigital to Showcase Excellence in Broadcast and Immersive Video Solutions at IBC 2024 • GlobeNewswire Inc. • 08/29/2024 08:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/22/2024 12:17:49 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/20/2024 08:06:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/20/2024 01:05:55 PM
- More than half of connected devices will be haptic enabled by 2028, revealing exciting opportunity for immersive video • GlobeNewswire Inc. • 08/20/2024 08:00:00 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/19/2024 08:19:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/19/2024 12:28:06 PM
- InterDigital Announces 2024 Investor Day • GlobeNewswire Inc. • 08/01/2024 12:45:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/01/2024 12:35:02 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/01/2024 12:32:54 PM
- Interdigital Announces Financial Results for Second Quarter 2024 • GlobeNewswire Inc. • 08/01/2024 12:30:21 PM
- InterDigital signs license agreement with Panasonic • GlobeNewswire Inc. • 08/01/2024 08:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:52:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:48:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:47:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:45:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:40:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:37:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:31:56 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM