mickey: You wonder why you are often criticized, it could be that your posts are often not based on reasonable assumptions.
In your calculation of potential yearly EPS of $5.25, you made two critical errors. First, and most important, although the rate may change you did not include any allowance for taxes to be paid. Second, your $98 million dollar revenue amount, included approximately $10 million for the one time final payment (value) of patents received under the Huawei license. As reported the high end range for normal recurring revenue was $88 million. Therefore your calculation should be revised as follows:
Normal recurring revenue………..$88 million
less: estimated expenses…………52
Equals: profit before tax……………36
Taxes @35% (approx)……………..12.6
Net profit……………………………..23.4
Yearly profit (X4)……………………93.6
Profit/share (35 million shares)….$2.67
The calculation is based on currently known factors. New revenue sources or changes in tax rates would change the calculation. However, the calculated EPS is close to the $2.78 amount reported yesterday by Research analysts at Dougherty & Co.
“InterDigital, Inc. (NASDAQ:IDCC) – Research analysts at Dougherty & Co raised their FY2018 earnings per share estimates for shares of InterDigital in a research report issued on Thursday. Dougherty & Co analyst C. Anderson now expects that the Wireless communications provider will earn $2.78 per share for the year, up from their previous estimate of $2.29”
