Xperi Holding’s 4Q Earnings Miss Estimates; Shares Drop 7%


Xperi Holding Corp delivered lower-than-expected earnings in the fourth quarter. In response, shares fell 7.4% in Tuesday’s extended trading session.

Xperi Holding (XPER) posted earnings per share (EPS) of $1.68 during the fourth quarter, which were behind analysts’ expectations of $1.84.

Revenue increased by about $343.4 million year-on-year to $433.9 million, topping analysts’ estimates of $431.55 million. The increase in 4Q revenues was attributable to an increase in hardware sales as well as revenues from licensing, services and software.

Xperi Holding CEO Jon Kirchner said, “Last year was transformative for Xperi. We closed our merger with TiVo, made significant progress on integration and were able to achieve $45 million in run rate synergies by year end. As we enter 2021, we continue to build our IP licensing business and product business, positioning them for improved long-term growth, stability, and profitability.”

Looking ahead to fiscal 2021, Xperi Holding expects revenues to land between $860 million to $900 million and adjusted free cash flow to be in the range of $185 million to $225 million. (See Xperi Holding stock analysis on TipRanks)

Today, B. Riley Financial analyst Eric Wold raised Xperi Holding’s price target to $34 (54.3% upside potential) from $33 and reiterated a Buy rating. Wold said, “With multiple paths to upside and the groundwork being laid for accelerating growth into 2022-all of which, we believe, played out and provides for an attractive setup for the shares over the next 12 months.”

According to TipRanks’ Smart Score system, Xperi Holding gets a score of 4 out of 10, which indicates that the stock is likely to perform in-line with market averages.

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