Why RPX Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of IP risk manager RPX jumped 21% today after the company reported earnings.
So what: Revenue was up 22% in the fourth quarter to $51.6 million and net income was $10.1 million, or $0.19 per share. Non-GAAP net income, which pulls out one-time items, was $0.24 per pro forma diluted share, which was more than the $0.19 per share analysts expected.
Now what: The earnings beat has investors excited today and the company is expecting profit to continue to roll in next year. Management expects revenue for 2013 to be between $223 million and $235 million and net income to be between $47 million and $52 million. Both ranges were ahead of current estimates. I think the earnings momentum will continue to push shares higher, although I'd like to get a better price than today's pop.
Interested in more info on RPX? Add it to your watchlist by clicking here.
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The article Why RPX Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends RPX. 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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