Acacia Research (NASDAQ:ACTG – Get Free Report) released its earnings results on Thursday. The business services provider reported $0.04 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.14, FiscalAI reports. Acacia Research had a negative net margin of 5.39% and a positive return on equity of 0.44%. The firm had revenue of $54.45 million during the quarter, compared to the consensus estimate of $45.50 million.
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 Price Performance
Shares of NASDAQ ACTG opened at $4.25 on Friday. The business has a 50 day simple moving average of $4.37 and a 200-day simple moving average of $4.52. The company has a market capitalization of $414.76 million, a price-to-earnings ratio of -23.61 and a beta of 0.60. The company has a current ratio of 4.76, a quick ratio of 4.51 and a debt-to-equity ratio of 0.11. Acacia Research has a twelve month low of $3.43 and a twelve month high of $5.27.
Analyst Upgrades and Downgrades
Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Acacia Research in a report on Wednesday. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $6.00.
View Our Latest Research Report on Acacia Research
Insider Buying and Selling at Acacia Research
In related news, Director Isaac Kohlberg sold 24,000 shares of Acacia Research stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $4.55, for a total transaction of $109,200.00. Following the completion of the sale, the director owned 54,310 shares of the company’s stock, valued at approximately $247,110.50. The trade was a 30.65% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.74% of the stock is currently owned by corporate insiders.
Acacia Research Company Profile
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.
Featured Articles
- Five stocks we like better than Acacia Research
- Sandisk Shares Are Oversold: Bargain or Value Trap?
- IonQ’s Record Revenue Includes a Big SkyWater Boost: Does That Change the Story?
- Airbnb Defied a Brutal Tech Sell-Off, But Can Its Post-Earnings Rally Last?
- MarketBeat Week in Review – 11/2 – 11/6
Receive News & Ratings for Acacia Research Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Acacia Research and related companies with MarketBeat.com's FREE daily email newsletter.
