Acacia Research (NASDAQ:ACTG) Issues Earnings Results

Acacia Research (NASDAQ:ACTG) released its quarterly earnings results on Thursday. The business services provider reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.14, FiscalAI reports. The company had revenue of $54.45 million during 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 Performance

Shares of NASDAQ ACTG traded down $0.03 during midday trading on Friday, reaching $4.21. The company had a trading volume of 76,489 shares, compared to its average volume of 245,953. Acacia Research has a 1 year low of $3.43 and a 1 year high of $5.27. The business’s 50-day simple moving average is $4.37 and its 200 day simple moving average is $4.52. The company has a current ratio of 4.76, a quick ratio of 4.51 and a debt-to-equity ratio of 0.11. The stock has a market cap of $410.84 million, a P/E ratio of -27.87 and a beta of 0.60.

Insider Buying and Selling at Acacia Research

In related news, Director Isaac Kohlberg sold 24,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $4.55, for a total value of $109,200.00. Following the transaction, the director directly owned 54,310 shares of the company’s stock, valued at $247,110.50. This represents a 30.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.74% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Separately, Weiss Ratings restated a “sell (d-)” rating on shares of Acacia Research in a report on Wednesday. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $6.00.

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.