Acacia Research (Nasdaq: ACTG) reported earnings on July 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Acacia Research whiffed on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
Acacia Research notched revenue of $23.1 million. The six analysts polled by S&P Capital IQ predicted revenue of $56.9 million on the same basis. GAAP reported sales were 54% lower than the prior-year quarter's $50.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.13. The five earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.13 for Q2 were 70% lower than the prior-year quarter's $0.43 per share. GAAP EPS were -$0.26 for Q2 versus $0.13 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 75.7%, 530 basis points worse than the prior-year quarter. Operating margin was -99.2%, much worse than the prior-year quarter. Net margin was -54.1%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $63.6 million. On the bottom line, the average EPS estimate is $0.56.

Next year's average estimate for revenue is $282.9 million. The average EPS estimate is $2.40.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 132 members out of 152 rating the stock outperform, and 20 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Acacia Research 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 Acacia Research is buy, with an average price target of $39.17.

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