The 10-second takeaway
For the quarter ended March 31 (Q1), Acacia Research crushed expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Acacia Research logged revenue of $76.9 million. The six analysts polled by S&P Capital IQ hoped for revenue of $55.2 million on the same basis. GAAP reported sales were 22% lower than the prior-year quarter's $99.0 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 $0.47. The five earnings estimates compiled by S&P Capital IQ anticipated $0.50 per share. Non-GAAP EPS of $0.47 for Q1 were 57% lower than the prior-year quarter's $1.09 per share. GAAP EPS of $0.11 for Q1 were 90% lower than the prior-year quarter's $1.09 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 76.0%, much worse than the prior-year quarter. Operating margin was 9.2%, much worse than the prior-year quarter. Net margin was 6.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $56.8 million. On the bottom line, the average EPS estimate is $0.52.
Next year's average estimate for revenue is $269.7 million. The average EPS estimate is $2.37.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 135 members out of 155 rating the stock outperform, and 20 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 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 $44.25.
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