Rovi Earnings Preview

Updated

Investors never know what to expect for Rovi (NAS: ROVI) , as it has wavered between topping and missing analysts estimates during the past fiscal year. The company will unveil its latest earnings on Tuesday. Rovi focuses on powering the discovery and enjoyment of digital entertainment by providing a broad set of integrated solutions.

What analysts say

What our community says
CAPS All-Stars are solidly behind the stock with 93.2% giving it an outperform rating. The community at large concurs with the All-Stars with 83.9% awarding it a rating of outperform. Fools are gung-ho about Rovi, though the message boards have been quiet lately with only 52 posts in the past 30 days. Rovi's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management
Rovi's income has fallen year over year by an average of 11.4%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

84.4%

87.7%

82.3%

88.1%

Operating Margin

14.2%

23.9%

23.1%

27.2%

Net Margin

10.6%

47.9%

26.4%

30.6%

For all our Rovi-specific analysis, including earnings and beyond, add Rovi to My Watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time thisarticle was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement