Saturday, May 18, 2013

Why RPX Shares Bounced Higher Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of risk management solutions company RPX (NASDAQ: RPXC  ) jumped as much as 10% today after the company reported earnings.

So what: First-quarter revenue jumped 40% to $61.2 million and adjusted net income rose 75% to $17.5 million, or $0.33 per share. Analysts estimated earnings of $0.29 per share on $60.1 million in revenue.  

Now what: The positive item investors are pointing to today is guidance for the second quarter. Management expects revenue of $56.8 million to $57.3 million, above the $54.6 million consensus, pointing to better-than-expected growth as the year goes on. Management didn't expect this to lead to great earnings, but I do think momentum is going in the right direction, and the stock can outperform after this earnings beat.

Interested in more info on RPX? Add it to your watchlist by clicking here.

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