Yahoo Finance InterDigital Provides Q2 Revenue Guidance Under ASC 606
InterDigital, Inc. IDCC has announced that it expects total revenues for the second quarter of 2018 to be between $63 million and $67 million. This range primarily comprises recurring revenues and includes less than $1 million of non-recurring revenues.
The mobile technology research and development company has adopted a new revenue recognition standard — ASC 606 — which came into effect from Jan 1, 2018.
Headquartered in Wilmington, DE, InterDigital has licenses and strategic relationships with many of the world's leading wireless companies. The new accounting standards have impacted the company’s recognition of revenues from certain of its fixed-fee and per-unit license agreements. In the interest of comparative analysis, InterDigital has adopted ASC 606 using the modified retrospective method.
The revenue guidance, however, does not include the potential impact of any new patent license, technology solutions or patent sale agreements that may be signed, or any arbitration or dispute resolutions that may occur, during the balance of second-quarter 2018.
The company had earlier projected second-quarter total revenues in the range of $85 million to $88 million, prior to the adoption of ASC 606. It has provided information under the previous revenue recognition rules solely in the interest of comparability during the transition year to ASC 606.
InterDigital has surpassed earnings estimates in each of the trailing four quarters, reflecting an average beat of 104.8%. Over the past three months, the stock has outperformed the industry with an average return of 4.3% against a decline of 4.5% for the latter.
InterDigital currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader industry include BlackBerry Limited BB, Motorola Solutions, Inc. MSI and Ubiquiti Networks, Inc. UBNT. While BlackBerry sports a Zacks Rank #1 (Strong Buy), Motorola and Ubiquiti carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackBerry has an expected long-term earnings growth rate of 18.6%. It exceeded earnings estimates twice in the trailing four quarters, with a beat of 500%.
Motorola has an expected long-term earnings growth rate of 8%. It exceeded earnings estimates in each of the trailing four quarters, with an average of 12.1%.
Ubiquiti has an expected long-term earnings growth rate of 18.6%. It exceeded earnings estimates thrice in the trailing four quarters, with an average of 8.9%.
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