InterDigital Reports Strong First Quarter 2024 Results
InterDigital, Inc. (IDCC) reported strong first-quarter 2024 results, exceeding both the bottom line and top line Zacks Consensus Estimates. The company generated higher revenues year-over-year, driven by solid licensing momentum in consumer electronics.
Revenue: Net sales rose to $263.5 million, a 30% year-over-year increase.
Non-GAAP net income was $94.5 million, or $3.58 per share, beating the Zacks Consensus Estimate by 21 cents.
The company inked several license agreements during the quarter, including a landmark deal with Samsung Electronics.
InterDigital generated $50.8 million of cash from operating activities.
Management anticipates 2024 revenues in the range of $620-$670 million and non-GAAP earnings per share between $7.45 and $8.76 per share.
Operating Expenses: Higher operating expenses led to lower net income despite top-line growth.
Total recurring revenues were $96.9 million, down from $101.6 million in the year-ago quarter.
Smartphone revenues decreased 57% year-over-year to $80.3 million.
Net sales from CE, IoT/Auto increased to $182.5 million from $16.1 million in the year-ago quarter.
As of March 31, 2024, InterDigital had $984.6 million in cash, cash equivalents, and short-term investments.
InterDigital: Currently has a Zacks Rank #3 (Hold).
Carries a Zacks Rank #2 (Buy) and delivered a trailing four-quarter average earnings surprise of 38.78%.
Carries a Zacks Rank #2 and is expected to benefit from strong momentum and diversification.
Carries a Zacks Rank #2 and delivered a trailing four-quarter average earnings surprise of 7.54%.
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