Acacia Research Earnings: Here’s Why Investors Don’t Like These Results

Acacia Research Corporation (NASDAQ:ACTG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.93%.

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Acacia Research Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 68.24% to $0.47 in the quarter versus EPS of $1.48 in the year-earlier quarter.

Revenue: Decreased 22.35% to $76.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Acacia Research Corporation reported adjusted EPS income of $0.47 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $58.68 million.

Quoting Management: “Acacia generated the second highest revenue quarter in company history in the 1st Quarter of 2013, providing a great start to the year,” commented CEO, Paul Ryan. “These results reflect Acacia’s growing industry leadership in patent licensing and are accelerating new opportunities to partner with patent owners.”

Key Stats (on next page)…

Revenue increased 16.06% from $66.26 million in the previous quarter. EPS decreased 45.35% from $0.86 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.59 to a profit $0.52. For the current year, the average estimate has moved up from a profit of $2.28 to a profit of $2.59 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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