The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Acacia Research crushed expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased. GAAP earnings per share increased.
Margins grew across the board.
Acacia Research booked revenue of $66.3 million. The five analysts polled by S&P Capital IQ hoped for sales of $41.4 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $20.8 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 $0.86. The five earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share. Non-GAAP EPS were $0.86 for Q4 versus -$0.17 per share for the prior-year quarter. GAAP EPS were $0.20 for Q4 compared to -$0.10 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 94.2%, much better than the prior-year quarter. Operating margin was 22.1%, much better than the prior-year quarter. Net margin was 14.8%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $45.8 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $293.0 million. The average EPS estimate is $2.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 132 members out of 153 rating the stock outperform, and 21 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Acacia Research a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Acacia Research is buy, with an average price target of $41.63.
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