NEW YORK (TheStreet) -- InterDigital (IDCC) stock is soaring Tuesday after the wireless telecom updated its expectations for second-quarter revenue far above analysts' estimates. The company said it expects sales between $172 million and $210 million, triple prior guidance of $65 million to $72 million. Analysts surveyed by Thomson Reuters anticipated revenue of $48.6 million.
"With roughly half of the market under license, we believe there is ample opportunity to continue to add to our recurring revenue base while adding little variable cost," said CFO Richard J. Brezski in a statement.
Additionally, the company has signed a multi-year, royalty-bearing licensing agreement with Samsung covering the sale of 3G, 4G and future-generation wireless products.
By late morning, shares had surged 19% to $44.53.
TheStreet Ratings team rates INTERDIGITAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERDIGITAL INC (IDCC) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."