Acacia Research Goes Negative
Acacia Research (NAS: ACTG) reported earnings on Oct. 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Acacia Research whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins increased, net margins contracted.
Acacia Research reported revenue of $34.9 million. The five analysts polled by S&P Capital IQ expected to see revenue of $41.9 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $50.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The five earnings estimates compiled by S&P Capital IQ averaged $0.25 per share. GAAP EPS were -$0.13 for Q3 versus $0.25 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 85.6%, 1,640 basis points better than the prior-year quarter. Operating margin was 18.5%, 1,860 basis points better than the prior-year quarter. Net margin was -18.3%, 3,970 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $50.2 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $241.6 million. The average EPS estimate is $2.45.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 127 members out of 148 rating the stock outperform, and 21 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Acacia Research a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Acacia Research is outperform, with an average price target of $55.00.
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The article Acacia Research Goes Negative originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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