InterDigital Inc (IDCC)

[olddog967]

Hydro_gen: I believe that the YAHOO reported average EPS of $1.14 for the 2nd qtr is low and has been distorted by what appears to be an unreasonable low estimate by one analyst. The following is a comparison of 2nd qtr earning estimates as reported by YAHOO and NASDAQ (Zacks).

……………..YAHOO…………NASDAQ
Average…….$1.14……………$1.34
High………….1.34…………….1.34
Low……….…0.76……………..1.33
Number…………3…………………2

http://www.nasdaq.com/symbol/idcc/earnings-forecast

https://finance.yahoo.com/quote/IDCC/analysts?p=IDCC


Based on the following calculation, it appears obvious that the YAHOO estimate was based on the following 3 analyst computations:

YAHOO/NASDAQ high analyst……..$1.34
NASDAQ low analyst………………….1.33
YAHOO low analyst……………………0.76
…….Total………………………………$3.43
Average (total /3)………………..……$1.14

Since we don’t have the details supporting the estimates, don’t know why there is such a variation in the 3rd (low) analyst’s estimate. Unless there were some major unforeseen expenses, I believe the $1.34 is a reasonable estimate.

Note: The one good thing about a low average estimate is that it should be easy to beat, and allows for a nice headline when earnings are reported.