The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RPX 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 expanded significantly.
Gross margins contracted, operating margins expanded, net margins increased.
RPX logged revenue of $51.6 million. The nine analysts polled by S&P Capital IQ anticipated a top line of $49.0 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $42.4 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 $0.24. The nine earnings estimates compiled by S&P Capital IQ averaged $0.18 per share. GAAP EPS of $0.19 for Q4 were 36% higher than the prior-year quarter's $0.14 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 57.7%, 50 basis points worse than the prior-year quarter. Operating margin was 31.1%, 150 basis points better than the prior-year quarter. Net margin was 19.6%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $60.2 million. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $229.8 million. The average EPS estimate is $0.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 137 members out of 139 rating the stock outperform, and two members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give RPX a green thumbs-up, and two give 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 $16.88.
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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. The Motley Fool recommends 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.