InterDigital, Inc. (IDCC) delivered impressive third-quarter financial results, exceeding analyst expectations on both earnings and revenue. The company reported adjusted earnings per share of $1.63, significantly surpassing the estimated 24 cents per share. Revenue also soared to $128.68 million, comfortably topping analyst estimates of $95.95 million.
This strong performance was largely driven by InterDigital’s consumer electronics and IoT licensing program, which saw a 15% year-over-year revenue growth. While the smartphone-related revenue segment experienced a 16% decline, this was primarily attributed to lower catch-up revenues and the expiration of its agreement with Huawei at the end of 2023. Despite this decline, the company still achieved a robust net income of $34.2 million.
InterDigital’s adjusted EBITDA also impressed, reaching $64.8 million, translating to a healthy 50% margin. The company’s CEO, Liren Chen, highlighted the strong performance of its consumer electronics and IoT licensing program as the key driver of the quarter’s success. He also pointed to new license agreements with OPPO Group, a leading smartphone vendor, and Lenovo, solidifying the company’s position in the market.
The positive results have led InterDigital to raise its full-year 2024 revenue guidance by $145 million, now projecting revenue between $855 million and $865 million. This reflects the company’s confidence in its continued growth trajectory. For the fourth quarter, InterDigital anticipates revenue between $239 million and $249 million, with adjusted earnings per share expected to range from $5.42 to $5.70.
The positive earnings announcement was met with enthusiasm by investors, with IDCC shares trading up over 1.5% at $150.06 in pre-market trading. The company’s strong financial performance and optimistic outlook suggest a bright future for InterDigital in the rapidly evolving technology landscape.
