Rovi Goes Red
Rovi (NAS: ROVI) reported earnings on Feb. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rovi missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly, and GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Rovi reported revenue of $177.2 million. The 15 analysts polled by S&P Capital IQ hoped for revenue of $193.7 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $140.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.60. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share on the same basis. GAAP EPS were -$0.46 for Q4 versus $0.60 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 83.4%, 2,460 basis points worse than the prior-year quarter. Operating margin was 13.2%, 3,480 basis points worse than the prior-year quarter. Net margin was -27.8%, 7,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $177.5 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $771 million. The average EPS estimate is $2.54.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 167 members rating the stock outperform and 24 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Rovi a green thumbs-up, and six 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 $43.30.
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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 here. He is 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 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.
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