WILMINGTON, Del. - InterDigital , Inc. (NASDAQ:IDCC) saw its shares surge 14% after the mobile and video technology company reported fourth-quarter earnings that significantly exceeded analyst expectations and provided an upbeat outlook for 2025.
The company reported adjusted earnings per share of $5.15 for the fourth quarter, surpassing the analyst consensus of $0.91 by $4.24. Revenue for the quarter came in at $252.8 million, beating the consensus estimate of $244.24 million. Compared to the same quarter last year, revenue soared 140% from $105.5 million.
InterDigital CEO Liren Chen attributed the strong performance to "increased momentum across all of our licensing programs and new agreements with some of the world’s largest device makers." He noted that 2024 was "another outstanding year" with record revenue of $869 million, up 58% YoY.
Looking ahead, InterDigital provided guidance for the first quarter of 2025, projecting revenue between $112 million and $116 million, below the analyst consensus of $130.5 million. However, the company’s full-year 2025 outlook was more optimistic, with expected revenue of $660 million to $760 million, well above the consensus estimate of $533 million.
The company also announced an increase in its quarterly cash dividend from $0.45 to $0.60 per share, effective in the second quarter of 2025.
Chen highlighted the company’s recent enforcement actions against The Walt Disney Company (NYSE:DIS), stating, "We believe that our technology is crucial to the viability and continued growth of the Disney services, and that we should be fairly compensated for the value of our foundational research."
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