ADEA Earnings Prediction
The chart below shows how ADEA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADEA sees a +2.40% change in stock price 10 days leading up to the earnings, and a +4.78% change 10 days following the report. On the earnings day itself, the stock moves by -0.04%. This data can give you a slight idea of what to expect for the next quarter's release.
ADEA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
119.17M
37.18%
38.40%
Gross Margin
--
--
--
Operating Margin
51.43%
75.59%
43.90%
Net Margin
30.23%
106.77%
34.77%
EPS
0.32
166.67%
88.24%
No Data Available
ADEA Earnings Analysis
Adeia Inc Corporation (ADEA.O) Earnings Conference Call
Positive
Earnings Per Share Beat: Adeia Inc. reported an EPS of $0.47, exceeding expectations of $0.42, indicating strong financial performance.
Record Revenue Achievement: The company achieved a record revenue of $119.2 million in Q4 2024, showcasing robust deal momentum and operational success.
Record Operating Cash Flow: Operating cash flow reached $107.5 million, marking a post-separation record and demonstrating effective cash management.
Quarterly Adjusted EBITDA Performance: Adjusted EBITDA for the quarter was $80.3 million, with an impressive operating margin of 67%, reflecting operational efficiency.
Customer Acquisition Success: Adeia signed 10 license agreements in Q4, including significant new deals with Amazon and Canon, highlighting strong customer acquisition.
New Media Revenue Surge: New media revenue increased by 65% year-over-year, driven by growth in the OTT market, which is a key focus area for Adeia.
Debt Reduction Achievement: The company reduced its debt by $50 million in Q4, bringing the total debt reduction since separation to $272.3 million, showcasing financial discipline.
Stock Buyback Program: Adeia initiated a stock buyback program, repurchasing $20 million of common stock, indicating confidence in its financial position and commitment to returning value to shareholders.
Strong Revenue Performance: The company reported a total revenue of $376 million for the full year 2024, with a 62% operating margin, reflecting strong overall performance.
Patent Portfolio Growth: Adeia's R&D efforts led to a 12% growth in its patent portfolios, with a focus on media and semiconductor markets, ensuring future innovation and competitiveness.
Negative
Operating Expenses Increase: Operating expenses increased by 12% from the prior quarter, reaching $39.4 million, which could indicate rising costs that may affect profitability.
R&D Expense Increase: Research and development expenses rose by 9% due to patent portfolio development costs and increased personnel costs, suggesting a significant investment that may not yield immediate returns.
Litigation Expense Surge: Litigation expenses surged by 44% compared to the prior quarter, primarily due to ongoing legal matters, including a lawsuit against Disney, which could strain financial resources and distract from core operations.
Interest Expense Impact: Interest expense, while decreased year-over-year, still represents a significant cost at $12.3 million, indicating ongoing debt obligations that could impact cash flow.
Litigation Expense Increase: The company anticipates litigation expenses to approximately double in the upcoming year, which could further strain financial resources and affect profitability.
EBITDA Margin Decline: The guidance for adjusted EBITDA margin is expected to decrease to approximately 59%, indicating potential challenges in maintaining profitability levels compared to previous quarters.
ADEA FAQs
How does ADEA typically perform around its earnings report dates?
Is Adeia Inc (ADEA) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ADEA Earning Call Sentiment
Adeia Inc. (NASDAQ:ADEA) Q4 2024 Earnings Call Transcript
ADEA.O
-0.51%Positive
The earnings call reveals strong financial performance, with a 65% YoY revenue increase and a robust EBITDA margin of 67%. Despite some unclear guidance on the semiconductor deal, the company maintains a strong pipeline and has made strategic acquisitions. The stock buyback and dividend payments indicate shareholder value focus. With a market cap of approximately $1.18 billion, the positive financials and strategic initiatives are likely to result in a moderate stock price increase of 2% to 8% over the next two weeks.
