Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.

Recs

0

Why Rovi Lost Nearly Half Its Value

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 Rovi (Nasdaq: ROVI  ) lost nearly half their value today, down by as much as 44%, after the company reported preliminary results and updated its full-year outlook last night.

So what: Second-quarter sales are expected at $158 million, lower than the $179 million seen a year ago. The company's losses are expected to widen to between $0.15 and $0.18 per share, also worse than the loss of $0.06 last time around. The consumer electronics segment's sales were hurt by fewer licensed manufacturers than expected and falling royalty-bearing unit sales.

Now what: As a result, Rovi is also slashing its full-year outlook, with revenue now expected in the range of $650 million to $680 million, with adjusted earnings per share of $1.60 to $1.90. That's a reduction of nearly a third as demand in its consumer electronics segment dries up. Rovi saw delays in inking new patent licensees, and while it prefers not to litigate, it's been unable to negotiate licenses with some manufacturers.

Interested in more info on Rovi? Add it to your Watchlist.

Fool contributor Evan Niu holds no position in any company mentioned. Check out his holdings and a short bio. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1949024, ~/Articles/ArticleHandler.aspx, 8/30/2015 10:51:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Evan Niu
TMFNewCow

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 3:59 PM
ROVI $10.98 Up +0.24 +2.23%
Rovi Corporation CAPS Rating: **