Rovi Shares Popped: What You Need to Know

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 software maker Rovi (NAS: ROVI) have popped today, up by as much as 19%, after it announced a strategic move and offered strong 2012 guidance.

So what: The company expects fiscal 2011 adjusted revenue between $775 million and $780 million, resulting in earnings of $2.45 to $2.50 per share. Fiscal 2012 sales should be between $810 million and $840 million, with $2.50 to $2.80 per share in profit.

Now what: Consensus estimates call for earnings of $2.45 and $2.64 for 2011 and 2012, respectively. In addition, Rovi will be selling its Roxio product line, known for digital media applications like Creator, Toast, and Popcorn, to Canada's Corel for an unspecified sum. It looks like Rovi wasn't too keen on its Roxio lineup, which it purchased somewhat recently in late 2010 from Sonic Solutions.

Interested in more info on Rovi? Add it to yourwatchlist.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.