The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Acacia Research whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP loss per share dropped.
Gross margins shrank, operating margins shrank, and net margins increased.
Acacia Research tallied revenue of $20.8 million. The six analysts polled by S&P Capital IQ foresaw a top line of $51.9 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $13.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.17. The six earnings estimates compiled by S&P Capital IQ anticipated $0.49 per share on the same basis. GAAP EPS were -$0.10 for Q4 versus -$0.15 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 68.9%, 60 basis points worse than the prior-year quarter. Operating margin was -38.2%, 440 basis points worse than the prior-year quarter. Net margin was -20.1%, 2,010 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.6 million. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $268.3 million. The average EPS estimate is $1.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 98 members rating the stock outperform and 23 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Acacia Research a green thumbs-up, and four 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 $50.67.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.