Why Rovi Shares Got Crushed
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What: Shares of Rovi have gotten crushed today, down by 21% at the low, after the company reported earnings but cut outlook.
So what: Revenue in the second quarter totaled $146.4 million, which translated into adjusted earnings per share of $0.46. That top-line figure was shy of the $152.9 million consensus estimate, and the bottom line was on target with expectations. The company said it was selling its consumer website businesses, which reduced its revenue forecast.
Now what: Rovi has entered separate agreements to sell its Rovi Entertainment Store and consumer website businesses so that it can focus on its core operations. Both deals should close this quarter, and both segments are being reclassified as discontinued operations. Rovi now expects fiscal 2013 sales at $600 million to $630 million, while investors were hoping for $645.4 million.
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The article Why Rovi Shares Got Crushed originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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