The 10-second takeaway
For the quarter ended March 31 (Q1), RPX met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Margins dropped across the board.
RPX reported revenue of $43.8 million. The nine analysts polled by S&P Capital IQ wanted to see net sales of $44.0 million on the same basis. GAAP reported sales were 28% higher than the prior-year quarter's $34.4 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 $0.19. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share. GAAP EPS were $0.15 for Q1 versus -$0.07 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 58.9%, 140 basis points worse than the prior-year quarter. Operating margin was 28.8%, 790 basis points worse than the prior-year quarter. Net margin was 18.4%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $198.8 million. The average EPS estimate is $0.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 69 members out of 70 rating the stock outperform, and one members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give RPX a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RPX is outperform, with an average price target of $22.75.
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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. Motley Fool newsletter services have recommended writing covered calls on 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.