The 10-second takeaway
For the quarter ended March 31 (Q1), Acacia Research beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share grew significantly.
Margins increased across the board.
Acacia Research reported revenue of $99 million. The seven analysts polled by S&P Capital IQ looked for a top line of $93.3 million on the same basis. GAAP reported sales were 62% higher than the prior-year quarter's $61.1 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 $1.09. The five earnings estimates compiled by S&P Capital IQ predicted $0.92 per share. GAAP EPS of $1.09 for Q1 were 221% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 92.3%, 1,370 basis points better than the prior-year quarter. Operating margin was 65.1%, 2,740 basis points better than the prior-year quarter. Net margin was 50.6%, 3,040 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $44.5 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $268.2 million. The average EPS estimate is $1.76.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 100 members rating the stock outperform and 22 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 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 $52.58.
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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.