- Acacia Research (ACTG) -19.7% shares are getting pummeled pre-market after the company's Q3 results came so far south of consensus expectations (revenue of $15.5M vs. consensus $37.6M, EPS of $0.11 vs. consensus of $0.44) that anyone who saw them must have had to double take.
- CEO Matthew Vella said on the conference call of the results: "We always remind investors that management does not attempt to manage for smooth sequential quarterly growth ... Unlike most companies, revenues not generated in the current quarter are not lost, but most likely are pushed into subsequent quarters. Our focus is on getting paid the right price for the licensing of our patents."
- When asked if he could commit to sequential quarterly revenue growth in Q4 by an analyst (who appeared to feel misled in his Q3 projections), "no, I can’t commit," Vella said.
- Stephens promptly downgraded Acacia two notches to Underweight and slashed its PT to $13 ($29 previous) due to a lack of confidence in the company's financial projections and abysmal Q3 results.
Acacia Research plunges on dismal Q3 results, loss in confidence
Oct 18 2013, 09:03 ET