InterDigital's Earnings Outlook

InterDigital IDCC unveils its next round of earnings this Thursday, February 18. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on InterDigital management projections, analysts predict EPS of $0.03 on revenue of $88.11 million. InterDigital EPS in the same period a year ago totaled $0.44. Revenue was $102.16 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 106.82%. Revenue would have fallen 13.75% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of InterDigital were trading at $68.26 as of February 16. Over the last 52-week period, shares are up 7.05%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. InterDigital is scheduled to hold the call at 10:00:00 ET and can be accessed here.