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 Viewpoint - InterDigital (IDCC) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price gains [1][2]. Earnings Estimate Revisions - Analysts have shown increasing optimism regarding InterDigital's earnings prospects, leading to higher earnings estimates which are expected to positively influence the stock price [2]. - The consensus earnings estimate for the current quarter is $2.51 per share, reflecting a decrease of 45.08% from the previous year, but has increased by 66.89% over the last 30 days with no negative revisions [7]. - For the full year, the expected earnings are $11.75 per share, which is a decrease of 21.51% from the prior year, yet the consensus estimate has risen by 15.23% due to three upward revisions and no negative changes [8][9]. Zacks Rank and Performance - InterDigital has achieved a Zacks Rank of 2 (Buy), indicating favorable estimate revisions that suggest strong potential for stock performance [10]. - Historically, stocks with a Zacks Rank of 1 (Strong Buy) and 2 (Buy) have significantly outperformed the S&P 500, with Zacks 1 stocks averaging a 25% annual return since 2008 [3][10]. Recent Stock Performance - Over the past four weeks, InterDigital shares have increased by 7.8%, reflecting investor confidence in the company's earnings growth prospects driven by the positive estimate revisions [11].

Core Viewpoint - InterDigital (IDCC) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in 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 the consensus measure of EPS estimates from sell-side analysts, reflecting the changing earnings picture of a company [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for InterDigital indicate an improvement in the company's underlying business, which is expected to positively influence its stock price [5][10]. 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][9]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revision features [9][10]. Recent Performance of InterDigital - For the fiscal year ending December 2025, InterDigital is expected to earn $10.17 per share, reflecting a change of -32.1% from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for InterDigital has increased by 53.3%, indicating a positive trend in earnings estimates [8].