Core Viewpoint - Xperi Inc. (XPER) is positioned favorably in the connected car software advertising market and is experiencing growth in its Pay-TV business due to a shift in consumer preferences towards OTT and streaming services [2][17]. Company Performance - XPER stock has gained 25.2% over the past six months, outperforming the Zacks S&P 500 composite growth of 11.1% but underperforming the industry rally of 48.9% [19]. - The stock closed at $10.2, slightly below its 52-week high of $10.4, and is trading above its 50-day moving average, indicating bullish investor sentiment [5]. Market Opportunities - The global market for connected car software advertising was valued at $84.7 billion in 2022 and is projected to grow at a CAGR of 13.4% from 2023 to 2030, with the U.S. market expected to grow at a CAGR of 11.6% during the same period [21]. - XPER has secured a second DTS AutoStage video design win from a Japanese automotive OEM, with deployments expected to start in 2025, and has signed an AutoStage license agreement with an American car company [7]. Financial Metrics - XPER is currently priced at 0.9 times forward 12-month sales per share, significantly lower than the industry average of 6.3 times, and has a trailing 12-month EV-to-EBITDA ratio of 21.3 times, compared to the industry average of 88.5 times [11]. - The consensus estimate for 2024 earnings is 87 cents per share, indicating a more than 100% increase from the previous year, with a projected 3.5% year-over-year rise to 90 cents per share in 2025 [16]. Subscriber Growth - IPTV subscribers have consistently increased over the past three quarters, growing from 2 million in Q1 2024 to 2.4 million in Q3 2024, which is expected to enhance the company's revenue [13]. - The shift towards OTT platforms is driving growth in XPER's Pay-TV business, as consumers move away from traditional TV [22][23].

Core Viewpoint - Xperi (XPER) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements due to institutional investors' reliance on these estimates for valuation [4][6]. - For Xperi, the upgrade reflects an improvement in the company's underlying business, suggesting that investor sentiment may drive the stock price higher [5]. Earnings Estimate Revisions - Xperi is projected to earn $0.87 per share for the fiscal year ending December 2024, representing a remarkable year-over-year change of 8600% [8]. - Over the past three months, the Zacks Consensus Estimate for Xperi has increased by 43.4%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Xperi to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for near-term price appreciation [11].

Core Viewpoint - Xperi (XPER) shares have increased by 4.3% recently, with a mean price target of $18.75 suggesting a potential upside of 92.9% from the current price of $9.72 [1] Price Targets and Estimates - The mean estimate includes four short-term price targets with a standard deviation of $7.89, indicating variability among analysts [2] - The lowest price target of $12 suggests a 23.5% increase, while the highest target of $30 indicates a potential surge of 208.6% [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price direction [7] Analyst Sentiment and Earnings Estimates - Analysts have shown increasing optimism about XPER's earnings prospects, as evidenced by a positive trend in earnings estimate revisions [9] - The Zacks Consensus Estimate for the current year has risen by 43.4% over the past month, with no negative revisions [10] - XPER holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be prudent, as they can often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy [3] Group 2: Xperi (XPER) Stock Analysis - XPER has shown a price increase of 4.3% over the past four weeks, indicating growing investor interest [4] - The stock gained 14.8% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - XPER has a beta of 1.54, suggesting it moves 54% more than the market in either direction [5] - The stock has a Momentum Score of A, indicating a favorable time to invest [6] - XPER has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [7] - The stock is trading at a Price-to-Sales ratio of 0.86, indicating it is relatively cheap at present [7] Group 3: Additional Investment Opportunities - Besides XPER, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, which may also be worth considering for investment [8] - There are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [9]

Revenue Performance - Revenue for Q3 2024 was $132.9 million, an increase of $2.5 million or 2% compared to Q3 2023, primarily driven by a $21.4 million increase in Pay-TV revenue[147]. - Revenue for the nine months ended September 30, 2024, decreased by $12.8 million or 3% to $371.3 million, mainly due to a $40.6 million decline in Consumer Electronics revenue[147]. Operating Expenses - Operating expenses for Q3 2024 totaled $151.4 million, a decrease of $9.995 million or 6% compared to Q3 2023[149]. - Research and development expenses for Q3 2024 were $53.6 million, down $2.8 million or 5% from Q3 2023, primarily due to lower spending in the AutoSense business[155]. - Selling, general and administrative expenses for Q3 2024 were $56.5 million, a decrease of $3.1 million or 5% compared to Q3 2023, attributed to reduced employee headcount[159]. Divestitures and Gains - The AutoSense divestiture was completed in January 2024, streamlining the business and enhancing focus on entertainment markets[144]. - The company reported a gain on divestiture of $6 million for the nine months ended September 30, 2024[146]. - The company recognized a gain of $22.9 million from the AutoSense Divestiture in the nine months ended September 30, 2024[169]. Losses and Net Income - Total operating loss for Q3 2024 was $14 million, an improvement from a $24 million loss in Q3 2023[146]. - The net loss for Q3 2024 was 15%, compared to a net loss of 32% in Q3 2023[146]. Stock-Based Compensation and Depreciation - Stock-based compensation expense decreased by $2.4 million (13%) and $6.4 million (12%) for the three and nine months ended September 30, 2024, compared to the same periods in 2023, primarily due to lower expenses for performance-based restricted stock units and reduced employee headcount[161]. - Depreciation expense for the three months ended September 30, 2024, was $2.9 million, a decrease of $1.3 million (31%) from $4.2 million in the same period of the prior year[162]. - Amortization expense for the three months ended September 30, 2024, was $10.9 million, down $3.8 million (26%) from $14.7 million in the same period of the prior year[164]. Cash Flow and Liquidity - Net cash used in operating activities was $56.6 million for the nine months ended September 30, 2024, primarily due to a net loss of $63.8 million[178]. - Cash and cash equivalents decreased to $72.7 million as of September 30, 2024, down $81.7 million from $154.4 million at December 31, 2023[173]. - The current ratio as of September 30, 2024, was 1.3, compared to 1.9 at December 31, 2023[173]. - Net cash used in investing activities was $12.9 million for the nine months ended September 30, 2024, primarily related to capital expenditures[180]. Share Repurchase and Debt - The company repurchased approximately 1.1 million shares of common stock at an average price of $8.92 per share for a total cost of $10.0 million during the three months ended September 30, 2024[177]. - The Promissory Note related to the acquisition of Vewd Software Holdings Limited has an outstanding principal amount of $50.0 million as of September 30, 2024, with a maturity date of July 1, 2025[184]. Market Risk and Accounting - There have been no material changes to the company's exposure to market risk since December 31, 2023[191]. - For more information on recent accounting pronouncements, refer to Note 1 in the Quarterly Report[190].

Q3 2024 Earnings November 6, 2024 Safe Harbor This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding: expectations regarding our future results of operations and financial position, margin expansion and overall growth, including, without lim ...

Investors might want to bet on Xperi (XPER) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. S ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potent ...

Xperi (XPER) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Individual in ...