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 (NASDAQ: RPXC  ) 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.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2253756, ~/Articles/ArticleHandler.aspx, 12/20/2014 12:26:05 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement