Rovi Misses Where It Counts

Rovi (Nasdaq: ROVI  ) reported earnings on Aug. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Rovi met expectations on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share expanded.

Margins dropped across the board.

Revenue details
Rovi tallied revenue of $158.3 million. The 13 analysts polled by S&P Capital IQ expected to see revenue of $158.0 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $193.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.37. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.38 per share. GAAP EPS were -$0.18 for Q2 versus -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 80.1%, 340 basis points worse than the prior-year quarter. Operating margin was 4.9%, 720 basis points worse than the prior-year quarter. Net margin was -11.7%, 610 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $162.4 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $662.9 million.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 170 members out of 199 rating the stock outperform, and 29 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Rovi a green thumbs-up, and 12 give it a red thumbs-down.

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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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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