Q2 EPS Estimates for InterDigital Reduced by Zacks Research

Key Points

• Zacks Research cut its Q2 2027 earnings estimates for InterDigital from $2.04 to $1.99 per share, while the consensus estimate for the company's current full-year earnings stands at $9.21 per share.
• The company's recent quarterly earnings report showed earnings per share (EPS) of $6.52, exceeding the expected $2.77, with a notable revenue increase of 34.5% year over year.
• Roth Capital has raised its target price for InterDigital from $270 to $350, reflecting a positive outlook with a current consensus "Buy" rating from analysts.

InterDigital, Inc. (NASDAQ:IDCC - Free Report) - Research analysts at Zacks Research lowered their Q2 2027 earnings per share (EPS) estimates for InterDigital in a research note issued to investors on Friday, September 12th. Zacks Research analyst Team now expects that the Wireless communications provider will earn $1.99 per share for the quarter, down from their prior forecast of $2.04. The consensus estimate for InterDigital's current full-year earnings is $9.21 per share.

InterDigital (NASDAQ:IDCC - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The Wireless communications provider reported $6.52 earnings per share for the quarter, topping analysts' consensus estimates of $2.77 by $3.75. The firm had revenue of $300.60 million during the quarter, compared to analyst estimates of $167.93 million. InterDigital had a return on equity of 53.44% and a net margin of 51.92%.The business's quarterly revenue was up 34.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $4.57 earnings per share. InterDigital has set its FY 2025 guidance at 14.170-14.770 EPS. Q3 2025 guidance at 1.520-1.720 EPS.

Separately, Roth Capital boosted their target price on InterDigital from $270.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 12th. One investment analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, InterDigital has an average rating of "Buy" and an average price target of $350.00.

InterDigital Price Performance

Shares of NASDAQ:IDCC traded down $4.40 during mid-day trading on Monday, reaching $334.81. The stock had a trading volume of 768,534 shares, compared to its average volume of 301,858. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 0.02. The company has a market cap of $8.64 billion, a P/E ratio of 23.86, a price-to-earnings-growth ratio of 1.69 and a beta of 1.42. InterDigital has a 1 year low of $136.58 and a 1 year high of $341.47. The business's 50 day moving average price is $268.76 and its 200 day moving average price is $232.48.

Institutional Investors Weigh In On InterDigital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osaic Holdings Inc. raised its holdings in shares of InterDigital by 22.8% in the second quarter. Osaic Holdings Inc. now owns 21,245 shares of the Wireless communications provider's stock worth $4,753,000 after buying an additional 3,949 shares during the period. Orion Porfolio Solutions LLC raised its holdings in shares of InterDigital by 40.0% in the second quarter. Orion Porfolio Solutions LLC now owns 4,001 shares of the Wireless communications provider's stock worth $897,000 after buying an additional 1,144 shares during the period. Coppell Advisory Solutions LLC purchased a new stake in shares of InterDigital in the second quarter worth approximately $1,219,000. Public Sector Pension Investment Board raised its holdings in shares of InterDigital by 6.0% in the second quarter. Public Sector Pension Investment Board now owns 98,590 shares of the Wireless communications provider's stock worth $22,107,000 after buying an additional 5,574 shares during the period. Finally, Headlands Technologies LLC raised its holdings in shares of InterDigital by 47.9% in the second quarter. Headlands Technologies LLC now owns 250 shares of the Wireless communications provider's stock worth $56,000 after buying an additional 81 shares during the period. 99.83% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other InterDigital news, CTO Rajesh Pankaj sold 1,000 shares of the company's stock in a transaction that occurred on Friday, September 5th. The stock was sold at an average price of $289.78, for a total transaction of $289,780.00. Following the sale, the chief technology officer directly owned 66,122 shares in the company, valued at $19,160,833.16. This represents a 1.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Joshua D. Schmidt sold 466 shares of the company's stock in a transaction that occurred on Friday, August 29th. The shares were sold at an average price of $273.12, for a total value of $127,273.92. Following the sale, the insider owned 28,370 shares in the company, valued at approximately $7,748,414.40. This trade represents a 1.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 3,932 shares of company stock worth $1,010,930. Company insiders own 2.80% of the company's stock.

InterDigital Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 22nd. Shareholders of record on Wednesday, October 8th will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 0.8%. This is a boost from InterDigital's previous quarterly dividend of $0.60. The ex-dividend date is Wednesday, October 8th. InterDigital's dividend payout ratio (DPR) is currently 17.11%.

InterDigital Company Profile

InterDigital, Inc operates as a global research and development company with focus primarily on wireless, visual, artificial intelligence (AI), and related technologies. The company engages in the design and development of technologies that enable connected in a range of communications and entertainment products and services, which are licensed to companies providing such products and services, including makers of wireless communications, consumer electronics, IoT devices, and cars and other motor vehicles, as well as providers of cloud-based services, such as video streaming.