IDCC Set to Report Q3 Results: Will Revenue Growth Boost Earnings?

InterDigital, Inc. IDCC is set to release  third-quarter 2025 results on Oct. 30, before the opening bell. In the last reported quarter, adjusted earnings were $6.52 per share.

The Wilmington-based advanced mobile technologies provider is expected to witness revenue expansion year over year, backed  by solid demand in the smartphone market. The company currently has 85% of the entire global smartphone market under its license.

Factors at Play

InterDigital is focused on pursuing agreements with unlicensed customers in the handset and consumer electronics markets. The company aims to become a leading designer and developer of technology solutions and innovation for the mobile industry, IoT and allied technology areas by leveraging its research and development (R&D) capabilities.

During the quarter, the company inked a new patent license agreement with Samsung Electronics. The company has also inked a licensing agreement with a leading Chinese smartphone vendor. The company already has major players such as Samsung, Apple, Xiaomi, Oppo and Vivo under its license. With the new customer addition, IDCC now has 8 out of 10 major smartphone players under its license.

With a comprehensive portfolio of more than 33,000 granted patents and applications, the company is also gaining traction in the consumer electronics and IoT markets. Focus AI applications for wireless and video technology and strategic collaboration with major academic institutions worldwide to expedite 6G research are positive factors.

Overall Expectations

Our estimate for total recurring revenues is pegged at $139.3 million, implying 8.1% year-over-year growth.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $145 million, indicating a growth $129 million reported in the prior-year quarter. The consensus estimate for adjusted earnings per share stands at $1.79, suggesting a growth from the prior-year quarter’s reported figure of $1.63.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for InterDigital this time around. The combination of a positive Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $2.05 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

InterDigital, Inc. Price and EPS Surprise

InterDigital, Inc. price-eps-surprise | InterDigital, Inc. Quote

Zacks Rank: InterDigital sports a Zacks Rank #1.

Stocks to Consider

Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Workday, Inc. WDAY is scheduled to report quarterly numbers on Nov 25. The Earnings ESP for the company is +.4.27% and it carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for Qualcomm Technologies, Inc. QCOM is +1.43% and it carries a Zacks Rank of 3 at present. The company is scheduled to report its quarterly numbers on Nov. 5.

Flex Ltd. (FLEX) is scheduled to report quarterly numbers on Oct. 29. The Earnings ESP for the company is +0.33% and it carries a Zacks Rank of 3 at present.

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This article originally published on Zacks Investment Research (zacks.com).

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