Stock to Track: Acacia Research Corporation (NASDAQ:ACTG)

Acacia Research Corporation (NASDAQ:ACTG) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.05 per share on revenue of $24.72M. Analysts had been modeling earning per share of $0.04 with $23.5M in revenue.

Acacia Research Corporation (ACTG) on April 21, 2016 reported results for the three months ended March 31, 2016.

• Revenues for the first quarter of 2016 were $24,721,000, as compared to $34,210,000 in the comparable prior year quarter.


• GAAP net loss for the first quarter of 2016 was $9,965,000 or $0.20 per diluted share, as compared to $13,130,000, or $0.27 per diluted share for the comparable prior year quarter.


• Non-GAAP net income for the first quarter of 2016 was $2,530,000 or $0.05 per diluted share, as compared to non-GAAP net income of $3,155,000, or $0.06 per diluted share for the comparable prior year quarter. See below for information regarding non-GAAP measures.


• Cash and cash equivalents and restricted cash totaled $156,852,000 as of March 31, 2016.

Summary Consolidated Financial Results

First quarter 2016 revenues decreased $9,489,000, or 28%, to $24,721,000, as compared to $34,210,000 in the comparable prior year quarter. In the first quarter of 2016, four licensees individually accounted for 22%, 19%, 16% and 11% of revenues recognized, as compared to two licensees individually accounting for 58% and 15% of revenues recognized during the first quarter of 2015.

First quarter 2016 inventor royalties expense decreased 83% due primarily to the 28% decrease in related revenues and a greater percentage of revenues generated in the first quarter of 2016 having lower average inventor royalty rates, primarily due to higher average levels of cost recovery related preferred returns, as compared to the portfolios generating revenues in the prior year quarter. First quarter 2016 contingent legal fees expense decreased 14%, as compared to a 28% decrease in related revenues, due primarily to certain patent portfolios generating revenues in the first quarter of 2015 having lower contingent fee rates, as compared to the portfolios generating revenues in the first quarter of 2016.

Acacia Research Corporation earnings per share showed a decreasing trend of -136.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 42%.Analysts project EPS growth over the next 5 years at 20%. It has EPS annual decline over the past 5 fiscal years of -39.8% when sales declined -1.1. It reported -27.8% sales drop, and 26.4% EPS growth in the last quarter.

The stock is trading at $5.16, up 82.98% from 52-week low of $2.82. The stock trades down -50.56% from its peak of $10.69 and 12.98% above the consensus price target of $5.83. Its volume clocked up at 0.98 million shares which is higher than the average volume of 0.71 million shares. Its market capitalization currently stands at $263.58M.