The earnings were better than estimates for the top line. Even the EPS came in line with expectations. The revenue came in at $58.6 million, up 24% compared to $47 million in Q3'12. The GAAP net income was $8.4 million (up 11%) or $0.16 per share (up 14%). The reaction has been positive, but the stock needs to cross $20 convincingly to start the next leg of the uptrend. It has rewarded the investors well and has appreciated 140% from the 52 week low made in November. The last earnings had led to a correction, and the Q3 numbers are expected to make it stronger. The guidance for revenues in Q4'13 is $60.2 - $60.6 million, and net income (non-GAAP) of $9.2 - $10 million. For the full fiscal 2013, the company expects total revenue in the range of $237.4 - $237.8 million. The net income (non-GAAP) is expected at $52.2 - $53.0 million. This is above the previous guidance issued by the management. Net acquisition spend is expected at $120 - $125 million. Barclays increased their price target for the stock from $18 to $20, and they have an overweight rating on the stock. Zacks upgraded it from underperform to neutral with a PT of $17.90. The consensus rating is buy, and the PT is just below $20. Analysts expect RPXC to post $0.99 EPS for 2013. The cash position has improved sequentially. The sector is buoyant as more and more companies are asserting their patent rights. Several have filed patent infringement lawsuits against much bigger companies, and companies like Marathon Patents Group (MARA) have started to get settlements / licensing revenues. The management guidance indicates that RPXC is expected to continue the growth story. The balance sheet is as strong as ever with zero debt and good cash position. The stock has to cross $20 decisively to get to the next orbit.
