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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