InterDigital Q3 Earnings Results: EPS Beat, Revenue Beat, Raised Guidance

InterDigital inc. IDCC reported third-quarter financial results before the market open on Thursday. Here’s what you need to know.

What To Know: InterDigital posted adjusted earnings per share of $1.63, beating the estimate of 24 cents per share, and revenue of $128.68 million, topping analyst estimates of $95.95 million, per Benzinga Pro.

Revenue from InterDigital's consumer electronics and IoT licensing program grew by 15% year-over-year, partly offset by a 16% drop in smartphone-related revenue, impacted by lower catch-up revenues and the expiration of its Huawei agreement at the end of 2023.

Net income came in at $34.2 million. Adjusted EBITDA was $64.8 million, with an adjusted EBITDA margin of 50%.

“In the third quarter we delivered revenues of about $129 million, exceeding the top end of our guidance, driven by a strong performance from our consumer electronics and IoT licensing program,” said Liren Chen, president and CEO of InterDigital.

“In addition, at the start of the fourth quarter, we announced a new license agreement with OPPO Group, a top smartphone vendor, and a binding arbitration agreement with Lenovo. Given the increasing momentum across the business, we are raising the midpoint of our 2024 full-year revenue guidance by $145 million to $860 million.”

For the fourth quarter, InterDigital projects revenue between $239 million and $249 million and adjusted earnings per share of $5.42 to $5.70.

The company also raised its full-year 2024 outlook, now expecting revenue of $855 million to $865 million, up from a prior range of $690 million to $740 million. Analysts are looking for revenue of $721.7 million, according to estimates from Benzinga Pro.

Adjusted earnings per share is now projected at $14.69 to $14.99, up from a prior guidance range of $9.70 to $10.95. Benzinga Pro estimates are calling for adjusted earnings of $7.87.

IDCC Price Action: InterDigital shares were up 1.58% at $150.06 at the time of writing, according to Benzinga Pro.

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