InterDigital, Inc. (NASDAQ:IDCC) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Statutory earnings performance was extremely strong, with revenue of US$129m beating expectations by 34% and earnings per share (EPS) of US$1.14, an impressive 370%ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for InterDigital
After the latest results, the consensus from InterDigital's five analysts is for revenues of US$531.6m in 2025, which would reflect a disturbing 26% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to crater 57% to US$4.56 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$486.6m and earnings per share (EPS) of US$3.77 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a sizeable expansion in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for InterDigital 6.3% to US$153on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values InterDigital at US$186 per share, while the most bearish prices it at US$100.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the InterDigital's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 22% annualised decline to the end of 2025. That is a notable change from historical growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that InterDigital's revenues are expected to perform substantially worse than the wider industry.