Replies to post #420089 on InterDigital Inc (IDCC)

[redviking]

Perhaps B. Riley shares the view expressed in the recent Seeking Alpha article of long-term value in IDCC with little downside risk. Obviously the earnings estimates are putting a damper on the viewpoint of much of the rest of the investing world.

[LTE]

<<Why would he have a BUY rating on a company about to experience a serious EPS haircut according to his estimates?>>

loophole73, good question.

Another thing that I don't understand are his estimates.

For example, last quarter's EPS was $1 per share with $88.5
million in recurring revenue and $97.3 million in total
revenue. Assuming the recurring revenue is relatively constant
with IDCC and the expenses are as well, that would mean that
recurring EPS should be about 90 cents per quarter = $3.60 per
year in recurring EPS. That's well above the $1.75 in estimates
by B Riley.

This could have to do with the new FASB accounting rules. But
I'm not sure how the analyst will know the implications until
they actually see what InterDigital reports in the next calender
year.