Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: InterDigital (IDCC) - InterDigital currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - Over the past week, IDCC shares increased by 0.12%, while the Zacks Wireless Equipment industry rose by 0.81% [5] - In a longer timeframe, IDCC shares have appreciated by 5.68% monthly, outperforming the industry's 2.05% [5] - Over the last quarter, IDCC shares rose by 13.21%, and over the past year, they surged by 112%, contrasting with the S&P 500's -4.28% and 11.56% respectively [6] Trading Volume - IDCC's average 20-day trading volume is 398,062 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the last two months, four earnings estimates for IDCC have been revised upwards, while none have been lowered, increasing the consensus estimate from $6.26 to $10.45 [9] - For the next fiscal year, three estimates have moved up, with one downward revision noted [9] Conclusion - Given the strong performance metrics and positive earnings outlook, IDCC is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Core Viewpoint - InterDigital, Inc. has signed a new multi-year, worldwide, non-exclusive, royalty-bearing license agreement with a major Chinese smartphone vendor, leading to an increased outlook for the first quarter of 2025 [1][2]. Financial Outlook - The revised first quarter 2025 outlook includes an increase in annualized recurring revenue (ARR) by $40 million to approximately $500 million [2]. - Current revenue expectations for the first quarter are projected to be between $202 million and $206 million, compared to the prior estimate of $112 million to $116 million [4]. - Adjusted EBITDA is expected to be between $143 million and $150 million, up from the previous range of $53 million to $60 million [4]. - Diluted EPS is now forecasted to be between $2.78 and $2.99, significantly higher than the prior estimate of $0.58 to $0.79 [4]. - Non-GAAP EPS is projected to be between $3.66 and $3.90, compared to the previous range of $1.19 to $1.42 [4]. Market Position - InterDigital now holds licenses with seven of the ten largest smartphone vendors, covering nearly 80% of the global smartphone market [2]. - The new agreement reflects the growing value of InterDigital's technology and the increasing momentum of its business [2]. Company Overview - InterDigital is a global research and development company focused on wireless, video, AI, and related technologies, providing foundational technologies for various communication and entertainment products [5]. - The company has a history of innovation in wireless technology, from early digital cellular systems to advanced 5G and Wi-Fi technologies [5].

Core Insights - InterDigital, Inc. has awarded the 2025 Inventor of the Year award to Martino Freda and Philippe Bordes for their significant contributions to wireless communication and video delivery technologies [1][2][3] Group 1: Innovations and Contributions - Martino Freda's patented innovations have enhanced communication efficiencies in 4G, 5G, and potential 6G networks, improving device-to-device communications and relay protocols [2][5] - Philippe Bordes has made substantial advancements in video codecs, including the High Efficiency Video Codec (HEVC) and Versatile Video Codec (VVC), which have improved video quality and compression efficiency [2][6][7] Group 2: Company Overview - InterDigital is a global research and development company focused on wireless, video, and AI technologies, providing foundational technologies for connected experiences across various industries [8][9] - The company licenses its innovations to a wide range of industries, including wireless communications, consumer electronics, IoT devices, and cloud-based services [9]

Core Insights - InterDigital, Inc. (IDCC) will showcase advanced solutions at Mobile World Congress 2025, focusing on 6G technology and its potential to transform communication and media delivery [1] - The company aims to enhance immersive sports entertainment through innovations in XR spatial experiences, delivering high-quality 2D HDR video, haptic feedback, and volumetric video [2] - InterDigital's Pixel Value Reduction solution will address energy consumption in mobile devices, utilizing AI to save energy while maintaining video quality [3] - The company will demonstrate Integrated Sensing and Communication (ISAC) technology, showcasing its application in autonomous navigation within smart factory environments [4] - A collaboration with Keysight will highlight a sensing solution that improves accuracy in dynamic environments using AI and existing 3GPP signals [5] - Split squeeze computing will be presented as a method to optimize AI applications by balancing latency, bandwidth, power consumption, and accuracy [6] - InterDigital's strategy focuses on becoming a leader in technology solutions for the mobile industry and IoT, leveraging its R&D capabilities and diverse product portfolio [7] - The company's innovations are expected to drive demand for its solutions, leading to increased revenues and improved financial performance [9] - IDCC shares have increased by 93.5% over the past year, outperforming the industry growth of 28.5% [10]

Core Insights - InterDigital, Inc. (IDCC) shares have increased by 82.8% over the past year due to improved market demand and a flexible business model, with earnings estimates rising by 49.3% [1] - The company has a strong portfolio of over 33,000 patents and applications, with a significant increase in innovation reflected by more than 5,000 new patent filings in 2024 [3] - InterDigital's adjusted EBITDA grew by 60% year-over-year to $551 million in 2024, indicating enhanced operational efficiency and profitability [3] Company Growth Drivers - InterDigital's diversified product portfolio and global presence are key growth drivers, with a focus on wireless technology solutions and new technologies in sensors, user interface, and video [2] - The company is committed to licensing its technologies to major wireless terminal equipment manufacturers, including Huawei, Samsung, LG, and Apple, while also targeting unlicensed customers in the handset and consumer electronics markets [4] Strategic Initiatives - InterDigital aims to enhance its licensing revenue by expanding its licensee base and entering adjacent technology areas that align with its intellectual property [5] - The company is actively engaged in 6G research, collaborating with academic institutions to advance MIMO systems and other technologies that will support future wireless communication needs [6][9] Financial Performance - The stock has a long-term earnings growth expectation of 15% and has delivered an average earnings surprise of 158.4% over the trailing four quarters [10]

WILMINGTON, Del., Feb. 18, 2025 (GLOBE NEWSWIRE) -- InterDigital innovation in wireless, video, and AI plays an important role in empowering new network capabilities and diverse video experiences. At Mobile World Congress 2025, InterDigital, Inc. (NASDAQ:IDCC), a mobile, video and AI technology research and development company, will showcase innovations and collaborations that are enhancing and improving the ways we communicate and consume media. Located at Hall 5 Stand 5C51, InterDigital will showcase cutt ...

Core Viewpoint - InterDigital (IDCC) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][3]. Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding InterDigital's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $2.23 per share, indicating a decrease of 37.71% from the previous year, but the Zacks Consensus Estimate has increased by 64.41% over the last 30 days due to one upward and one downward revision [4]. - For the full year, the expected earnings are $9.30 per share, representing a decline of 37.88% from the prior year, with three estimates moving higher and no negative revisions, leading to a 57.71% increase in the consensus estimate [5]. Zacks Rank - InterDigital currently holds a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with significant outperformance compared to the S&P 500 [6]. - Stocks with Zacks Rank 1 and 2 have shown a strong track record, with Zacks 1 stocks generating an average annual return of +25% since 2008 [3][6]. Stock Performance - The stock has appreciated by 16.9% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [7].

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 140% year-over-year to $253 million, with adjusted EBITDA and non-GAAP EPS nearly quadrupling year-over-year [9][26] - For the full year 2024, revenue rose almost 60% to $869 million, marking the highest annual revenue in the company's history [11][30] - Adjusted EBITDA margin for 2024 was strong at 63%, a 20-point improvement over the past four years [30] Business Line Data and Key Metrics Changes - The company closed 14 new licensing agreements throughout 2024, contributing to significant revenue growth [12] - More than 30% of 2024 revenue came from consumer electronics and IoT programs, highlighting growth beyond the smartphone sector [13] - The company has now licensed the top four largest smartphone manufacturers, covering approximately 70% of annual smartphone shipments worldwide [10] Market Data and Key Metrics Changes - The company anticipates a strong growth trajectory in the video services market, with a focus on monetizing its technology in the streaming industry [22] - The streaming industry is projected to match the size of the smartphone industry by 2027, with the company targeting $300 million in recurring revenue from this market by 2030 [72] Company Strategy and Development Direction - The company aims to achieve over $1 billion in annual recurring revenue and $600 million in adjusted EBITDA by 2030 [19] - The strategy includes focusing on signing remaining unlicensed smartphone vendors and renewing existing agreements at higher levels [21] - The company is also pursuing growth in consumer electronics and IoT programs, as well as expanding its video services [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within a $6 trillion ecosystem, emphasizing the critical nature of its technology [7] - The company is prepared to defend its intellectual property rights while also seeking amicable negotiations with major players like Disney [23][44] - Management noted that geopolitical tensions are considered, but the technology is built on open standards, which mitigates risks associated with such tensions [106][110] Other Important Information - The company received an innovation award for AI-empowered receiver design for 6G communication, showcasing its leadership in wireless technology [16] - The company ended 2024 with nearly $1 billion in cash, including over $500 million in net cash, allowing for continued shareholder returns through buybacks and dividends [31][32] Q&A Session Summary Question: Update on Disney litigation and engagement with other streaming vendors - Management confirmed ongoing litigation with Disney after 2.5 years of negotiations, emphasizing a preference for amicable resolutions but readiness for enforcement [43][44] - Engagement with other streaming service providers is ongoing, with hopes for progress through bilateral negotiations [46] Question: Guidance on annual revenue and recurring revenue - Management discussed the challenges in predicting outcomes due to various factors, including catch-up sales and recurring revenue from expiring agreements [47][48] - The company aims for double-digit growth in recurring revenue for 2025, with several major opportunities in the pipeline [49][52] Question: Capital structure and convertible notes - Management explained the impact of interest expense and potential dilution from convertible notes, noting a robust balance sheet with $500 million in net cash [56][59] Question: Impact of geopolitical tensions on contracts - Management stated that the technology is based on open standards, which are not subject to export controls, and emphasized strong support from various countries [106][110] Question: Guidance approach for 2025 - Management reiterated a holistic view of open opportunities and the likelihood of completion, with adjustments made throughout the year as larger deals are finalized [115][117]

InterDigital, Inc. (IDCC) reported mixed fourth-quarter 2024 results, with the top line beating the Zacks Consensus Estimate but the bottom line missing the same. The company generated higher revenues year over year, driven by solid licensing momentum and product innovation. IDCC is also advancing its leadership position in AI (artificial intelligence) applications for wireless and video technology.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net IncomeQuarterly net income increase ...

Fourth Quarter 2024 Results February 6, 2025 INNOVATING TODAY EMPOWERING TOMORROW TM Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Exchange Act. Such statements include information regarding our current beliefs, plans and expectations, including, without limitation, the matters set forth below. Words such as "believe," "anticipate," "estimate," "expect," "project," "intend," "plan," "forecast," "goal," "could," "would," ...