Rovi Goes Negative
Rovi (NAS: ROVI) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Rovi met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Rovi chalked up revenue of $175.0 million. The 15 analysts polled by S&P Capital IQ expected a top line of $177.6 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $161.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS were -$0.05 for Q1 versus $0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.0%, 140 basis points worse than the prior-year quarter. Operating margin was 13.8%, 330 basis points worse than the prior-year quarter. Net margin was -2.6%, 1,320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $184.1 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $770.2 million. The average EPS estimate is $2.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members out of 187 rating the stock outperform, and 23 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Rovi a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rovi is outperform, with an average price target of $41.83.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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