Rovi Earnings Preview

Investors never know what to expect for Rovi (Nasdaq: 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

• Buy, sell, or hold?: Analysts strongly back Rovi, with 10 of 13 rating it a buy and the remainder rating it a hold. Analysts don't like Rovi as much as competitor Apple overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
• Revenue forecasts: On average, analysts predict $192.1 million in revenue this quarter. That would represent a rise of 42.5% from the year-ago quarter.
• Wall Street earnings expectations: The average analyst estimate is earnings of $0.49 per share. Estimates range from $0.43 to $0.52.

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.

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