The 10-second takeaway
For the quarter ended March 31 (Q1), RPX beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
RPX booked revenue of $61.2 million. The seven analysts polled by S&P Capital IQ looked for net sales of $60.2 million on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $43.8 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 $0.33. The seven earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. Non-GAAP EPS of $0.33 for Q1 were 74% higher than the prior-year quarter's $0.19 per share. GAAP EPS of $0.28 for Q1 were 87% higher than the prior-year quarter's $0.15 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 61.3%, 240 basis points better than the prior-year quarter. Operating margin was 37.7%, 890 basis points better than the prior-year quarter. Net margin was 24.0%, 560 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $56.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $230.3 million. The average EPS estimate is $1.01.
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 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $17.25.
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