Core Insights - InterDigital, Inc. (IDCC) is expected to report third-quarter 2025 results on October 30, with adjusted earnings of $6.52 per share in the last quarter [1] - The company is projected to experience revenue growth year over year, driven by strong demand in the smartphone market, holding licenses for 85% of the global smartphone market [1] Factors at Play - InterDigital is actively pursuing agreements with unlicensed customers in the handset and consumer electronics sectors, aiming to be a leading designer and developer in mobile technology and IoT [2] - The company has secured a new patent license agreement with Samsung Electronics and a leading Chinese smartphone vendor, now licensing 8 out of the 10 major smartphone players [3] Patent Portfolio and Innovation - InterDigital boasts a portfolio of over 33,000 granted patents and applications, enhancing its presence in consumer electronics and IoT markets [4] - The company is focusing on AI applications for wireless and video technology and collaborating with major academic institutions to accelerate 6G research [4] Overall Expectations - Total recurring revenues are estimated at $139.3 million, reflecting an 8.1% year-over-year growth, with the Zacks Consensus Estimate for revenues at $145 million for the September quarter [5] - The consensus estimate for adjusted earnings per share is $1.79, indicating growth from the previous year's $1.63 [5] Earnings Whispers - The current model does not predict an earnings beat for InterDigital, with an Earnings ESP of 0.00% and both estimates at $2.05 per share [6][7] - InterDigital holds a Zacks Rank of 1, indicating a strong buy [7] Stocks to Consider - InterDigital's new patent agreements with Samsung and a major Chinese vendor enhance its market reach in the smartphone sector [8] - The company's strong patent portfolio and innovation efforts support growth in IoT and AI segments [8]

Industry Overview - The technology sector is experiencing strong growth driven by the adoption of Artificial Intelligence (AI), Generative AI (GenAI), and Agentic AI, alongside the digitalization wave fueled by AI and cloud computing [1] - There is a rising demand for high-bandwidth and low-latency networks (5G), as well as hardware components such as GPUs, AI accelerators, memory chips, and data center infrastructure [1][3] Earnings Outlook - Several technology stocks are expected to report quarterly results soon, with a focus on four companies: Meta Platforms (META), Reddit (RDDT), InterDigital (IDCC), and AMETEK (AME), which are well-positioned to exceed earnings estimates [2] - Meta Platforms anticipates third-quarter 2025 ad revenues of $48.5 billion, reflecting a 21.6% year-over-year growth, with earnings expected at $6.60 per share, indicating a 9.45% increase from the previous year [10][11] - Reddit projects revenues between $535 million and $545 million for the third quarter of 2025, suggesting a 57.8% year-over-year growth, with earnings expected at 52 cents per share, representing a 225% increase from the prior year [14] - InterDigital expects third-quarter earnings between $1.52 and $1.72 per share, with a consensus estimate of $1.79 per share, indicating a 9.8% growth year-over-year [16][17] - AMETEK forecasts mid-single-digit percentage growth in overall sales year-over-year, with adjusted earnings expected between $1.72 and $1.76 per share, reflecting a 4-6% increase from the previous year [19] Investment Trends - The demand for data center capacity is increasing due to escalating AI needs, prompting major cloud providers like Amazon, Alphabet, Microsoft, and Meta Platforms to invest significantly in AI-related infrastructure [4] - The semiconductor industry is witnessing robust growth, with semiconductor sales reaching $64.9 billion in August 2025, a 21.7% increase year-over-year [5] - The PC segment also saw growth, with IDC estimating 75.8 million units sold in the third quarter of 2025, up 9.4% year-over-year [6]

Core Viewpoint - The market anticipates InterDigital (IDCC) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - InterDigital is expected to report quarterly earnings of $1.79 per share, reflecting a year-over-year increase of +9.8%, with revenues projected at $147.53 million, up 14.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +17.32% for InterDigital, suggesting analysts have become more optimistic about the company's earnings prospects [12]. Historical Performance - In the last reported quarter, InterDigital exceeded expectations by delivering earnings of $6.52 per share against an expected $3.36, resulting in a surprise of +94.05% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Investment Considerations - While a potential earnings beat is a positive indicator, other factors may also influence stock performance, making it essential to consider the broader context [15][17].

Core Insights - InterDigital, Inc. has renewed a multi-year, worldwide, non-exclusive, royalty-bearing license with Seiko Solutions Inc. covering cellular products under InterDigital's standard essential patents related to 3G, 4G, and 5G technologies [1] - This agreement highlights the value of InterDigital's innovations to the ecosystem of connected technologies, as stated by Julia Mattis, Chief Licensing Officer [2] - InterDigital focuses on research and development in wireless, video, and AI technologies, licensing innovations to various sectors including wireless communications, consumer electronics, IoT devices, and cloud-based services [3] Company Overview - InterDigital is a global R&D company established in 1972, listed on Nasdaq, and specializes in foundational technologies for connected and immersive experiences [3] - The company has a strong portfolio in wireless technology, having developed innovations from early digital cellular systems to advanced 5G and Wi-Fi technologies [3] - InterDigital is also a leader in video processing and encoding/decoding technology, with significant research efforts in AI that intersect with wireless and video technologies [3]

Core Insights - InterDigital has renewed its patent license agreement with Sharp and signed a new agreement with an EV charger manufacturer, highlighting its ongoing innovation in wireless and video technologies [1][2] - The renewal with Sharp covers technologies including 4G, 5G, Wi-Fi, and HEVC, while the new agreement pertains to home and commercial EV chargers [1] - InterDigital aims to achieve $500 million in annualized recurring revenue from its smartphone program by 2027, with approximately 85% of the smartphone market currently under license [2] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence, and related technologies, enabling connected experiences across various communication and entertainment products [3] - The company licenses its innovations to manufacturers of wireless devices, consumer electronics, IoT devices, and cloud-based service providers, positioning itself as a leader in wireless technology [3] - Founded in 1972 and listed on Nasdaq, InterDigital has a significant presence in video processing and encoding technologies, alongside a robust AI research initiative [3]

Core Points - InterDigital, Inc. will release its third quarter 2025 financial results on October 30, 2025, before the market opens [1] - A conference call to discuss the company's performance will take place on the same day at 10:00 a.m. Eastern Time [1] Company Overview - InterDigital is a global research and development company focused on wireless, video, artificial intelligence (AI), and related technologies [4] - The company designs and develops foundational technologies that enable connected and immersive experiences across various communications and entertainment products and services [4] - InterDigital licenses its innovations to companies in multiple sectors, including wireless communications, consumer electronics, IoT devices, and cloud-based services [4] - The company has a strong history in wireless technology, having contributed to the development of digital cellular systems, 5G, and advanced Wi-Fi technologies [4] - InterDigital is also a leader in video processing and encoding/decoding technology, with significant efforts in AI research that intersect with wireless and video technologies [4] - Founded in 1972, InterDigital is listed on Nasdaq [4]

Core Insights - The report from InterDigital and ABI Research highlights the transition from 5G-Advanced to 6G, emphasizing the role of 3GPP Release 20 in establishing standards for future connectivity [2][3][4] Group 1: 5G-Advanced and 6G Transition - 3GPP Release 20 is a pivotal milestone that solidifies 5G's commercial maturity while initiating studies for the next generation of connectivity [2][3] - Release 20 is described as a bridge between generations, leveraging a decade of 5G innovation to facilitate the development of a smarter and more sustainable 6G [3][4] Group 2: Key Features of Release 20 - The report outlines several key design principles, including AI-native architectures, Integrated Sensing and Communication (ISAC), and Non-Terrestrial Networks (NTN) [2][7] - AI-Native Networks will enhance performance through predictive systems, while ISAC will enable networks to perceive environmental context, opening new automation and mobility opportunities [7] - NTN aims to integrate cellular and satellite networks for global coverage, addressing deployment challenges and enhancing positioning capabilities [7] Group 3: Future Vision and Market Impact - The report envisions a future where networks evolve into intelligent ecosystems that redefine human experiences and power the global digital economy [4] - 6G is expected to support new services such as holographic communication, ambient IoT, and safer autonomous industrial systems, driven by ultra-reliable, low-latency networks [4]

Core Insights - InterDigital has been awarded a contract by the U.S. Department of War to lead research on advanced spectrum coexistence for civil and military applications [1] - The project aims to improve dynamic spectrum sharing between government radar systems and commercial 5G networks, ensuring both can operate reliably in mid-band frequencies [2] - The collaboration includes industry partners DeepSig and Skylark Wireless, focusing on innovative technologies leveraging AI and sensing advancements [1][3] Company Overview - InterDigital is a global research and development company specializing in wireless, video, and AI technologies, with a history of innovations that enable connected experiences across various communication products [4] - The company has a strong foundation in dynamic spectrum sharing technologies, validated through previous government initiatives and commercial deployments [3][4] Partner Contributions - DeepSig provides AI-native spectrum sensing and communications software, enhancing the coexistence of defense systems and commercial networks [3][7] - Skylark Wireless contributes its expertise in last-mile connectivity and dynamic spectrum-sharing solutions, supporting national security while advancing commercial sector capabilities [3][8]

Group 1: Pagaya Technologies Ltd. (PGY) - The company has a Zacks Rank 1 and a Momentum Score of A [1] - The Zacks Consensus Estimate for its current year earnings increased by 12.3% over the last 60 days [1] - Pagaya's shares gained 31.2% over the last three months, outperforming the S&P 500's advance of 7.8% [1] Group 2: InterDigital, Inc. (IDCC) - The company has a Zacks Rank 1 and a Momentum Score of A [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.8% over the last 60 days [2] - InterDigital's shares gained 50% over the last three months, significantly outperforming the S&P 500's advance of 7.8% [2] Group 3: Sumitomo Mitsui Financial Group, Inc. (SMFG) - The company has a Zacks Rank 1 and a Momentum Score of B [3] - The Zacks Consensus Estimate for its current year earnings increased by 7.2% over the last 60 days [3] - Sumitomo Mitsui's shares gained 11.3% over the last three months, slightly outperforming the S&P 500's advance of 7.8% [3]

Core Insights - InterDigital, Inc. (IDCC) shares have increased by 143.6% over the past year due to strong market demand, a flexible business model, and solid cash flow [1][7] - Earnings estimates for the current fiscal year have risen by 167.9%, while estimates for the next fiscal year have increased by 65.3%, indicating strong growth potential [1][7] - The company is currently rated Zacks Rank 1 (Strong Buy), suggesting it is a solid investment option [1] Growth Drivers - InterDigital's global presence, diversified product portfolio, and market penetration capabilities are key growth drivers [3] - The company has a strong portfolio of wireless technology solutions and is expanding its offerings to include sensor, user interface, and video technologies, which are expected to add significant value [3] - Licensing agreements with major companies like Huawei, Samsung, LG, and Apple enhance its market capabilities [4] Strategic Focus - InterDigital aims to be a leading designer and developer of technology solutions for the mobile industry and IoT by leveraging its R&D capabilities and industry experience [5] - The company plans to increase its licensing revenue by adding more licensees and expanding into adjacent technology areas [5] 6G Research Initiatives - InterDigital is investing in 6G research, collaborating with academic institutions globally to advance MIMO systems and other technologies [8][9] - The focus on Massive MIMO technology is expected to significantly enhance data rates and spectrum efficiency for future networks [8] Financial Outlook - For 2025, InterDigital expects revenues between $790 million and $850 million, an increase from previous estimates of $660 million to $760 million [10] - Adjusted EBITDA is forecasted to be between $551 million and $569 million, up from earlier estimates of $400 million to $495 million [10] - Non-GAAP earnings are projected to be between $14.17 and $14.77, an increase from the previous range of $9.69 to $12.92 [10] Long-term Growth Expectations - The company has a long-term earnings growth expectation of 15% and has delivered an average earnings surprise of 54.3% over the last four quarters [11]