InterDigital Announces Participation in 5GROWTH Project
InterDigital, Inc. IDCC recently announced its participation in the 5GROWTH project. The wireless R&D company continues to play an important role by contributing technology intellectual property and coordination. 5GROWTH is part of H2020 5G-Public Private Partnership, a joint initiative between the European Commission and the European information and communication technology industry.
As part of the third phase of the H2020 5G Infrastructure initiative, 5GROWTH seeks to facilitate vertical industries with automated and intelligent 5G solutions. InterDigital is optimizing its strength in core wireless licensing business. It remains poised to benefit from future growth opportunities, fueled by the 5G rollout.
The company’s commitment toward licensing its broad portfolio of technologies to wireless terminal equipment makers, which allows it to expand its core market capability, is laudable. Its global footprint, diversified product portfolio and ability to penetrate in different markets instill optimism.
InterDigital aims to contribute to the deployment of 5G technologies for the fourth industrial revolution use cases, uniting mission-critical automation with bandwidth-intensive video applications. The company will likely provide software-defined virtualized platforms for distributed edge and fog computing.
Further, it will lead the standardization advisory committee set up in 5GROWTH to manage the dissemination into key development organizations. Started in June 2019, 5GROWTH will commence activity with nine field trials to be conducted on four vertical-owned sites situated in Spain, Italy and Portugal. The state-of-the-art project is expected to operate for two and a half years until the end of 2021.
5GROWTH is headed by a group of 21 partners from seven European countries. This includes global vendors, operators, vertical industries, and research institutes and universities. The project obtained a funding of €14.1 million from the European Commission.
InterDigital has long-term earnings growth expectation of 15%. It remains committed toward its objective of enhancing revenue sources while controlling expenses. The stock has lost 3.1% against the industry’s rise of 11.1% in the year-to-date period. Management has provided healthy revenue guidance for second-quarter 2019, with an expectation of $73-$77 million.
Currently, InterDigital has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Comtech Telecommunications Corp. CMTL, Ubiquiti Networks, Inc. UBNT and PCTEL, Inc. PCTI, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech has long-term earnings growth expectation of 5%.
Ubiquiti has long-term earnings growth expectation of 19.8%.
PCTEL surpassed earnings estimate twice in the trailing four quarters, the average positive surprise being 100%.
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