Acacia Research (NASDAQ:ACTG) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Acacia Research (NASDAQ:ACTG - Get Free Report) posted its earnings results on Thursday. The business services provider reported $0.04 EPS for the quarter, topping analysts' consensus estimates of ($0.10) by $0.14, FiscalAI reports. The business had revenue of $54.45 million for the quarter, compared to analysts' expectations of $45.50 million. Acacia Research had a positive return on equity of 0.44% and a negative net margin of 5.39%.

Here are the key takeaways from Acacia Research's conference call:

• Acacia reported third-quarter revenue of $54.4 million, down from $59.4 million a year earlier, and a $5.6 million GAAP net loss; adjusted net income was $4.3 million. Operating segments excluding intellectual property generated $11.6 million of adjusted EBITDA.
• Benchmark’s initial Cherokee well continued to outperform expectations, and its newly drilled second well had encouraging early results. A non-recourse financing facility of up to $47.5 million will fund an initial four-well Cleveland development program, though the second well is still in early flowback.
• Deflecto revenue declined to $27.2 million from $30.8 million year over year, while adjusted EBITDA fell to $1.0 million from $2.6 million, amid soft housing-related demand and higher input costs. Management said profitability improved in September and cited cost and operational changes, but a broader recovery remains dependent on demand.
• Acacia ended the quarter with $346.3 million in cash, securities, and loans receivable and no parent-company debt. Its public securities portfolio generated $8.2 million in realized gains during the quarter, while management said it is pursuing acquisition opportunities in both private and public markets.
• The intellectual property segment generated about $300,000 in licensing revenue and recorded $2.5 million of adjusted EBITDA losses, with no paid-up license revenue in the quarter. Management described licensing as episodic, expressed confidence in remaining portfolio value, and said it has reduced the segment’s overhead.

Acacia Research Stock Down 3.0%

Shares of ACTG stock traded down $0.13 during mid-day trading on Thursday, reaching $4.23. 453,170 shares of the company were exchanged, compared to its average volume of 246,808. Acacia Research has a fifty-two week low of $3.43 and a fifty-two week high of $5.27. The company has a debt-to-equity ratio of 0.11, a quick ratio of 4.51 and a current ratio of 4.76. The company has a market capitalization of $412.81 million, a P/E ratio of -28.20 and a beta of 0.60. The business's 50 day simple moving average is $4.38 and its 200 day simple moving average is $4.52.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a "sell (d-)" rating on shares of Acacia Research in a report on Friday, August 7th. One research analyst has rated the stock with a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $6.00.

Insider Transactions at Acacia Research

In related news, Director Isaac Kohlberg sold 24,000 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $4.55, for a total transaction of $109,200.00. Following the transaction, the director directly owned 54,310 shares in the company, valued at $247,110.50. This trade represents a 30.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.74% of the stock is owned by insiders.

About Acacia Research

Acacia Research Corporation is an investment and intellectual property company headquartered in Irvine, California. The company acquires businesses, assets and patent portfolios that it believes have the potential to generate value through licensing, monetization, operational improvement or strategic transactions.

Historically, Acacia has been primarily known for its patent licensing business. Through subsidiaries and affiliated entities, it has acquired rights to patented technologies, worked with inventors and patent owners, and pursued licensing agreements with companies that use those technologies.