Please ensure Javascript is enabled for purposes of website accessibility

Why TiVo Inc. Stock Is Soaring Today

By Anders Bylund - Nov 4, 2016 at 11:47AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

TiVo plus Rovi equals a brand-new version of TiVo, armed to the teeth with fresh license contracts and ready to build something new out of these two platforms.

Image source: Getty Images.

What happened

Shares of TiVo (TIVO) jumped as much as 15.4% higher on Friday morning, following the release of a strong third-quarter report.

So what

During the third quarter, the entertainment information tools specialist formerly known as Rovi completed the acquisition of digital video recorder veteran TiVo, and then adopted the TiVo name for the whole business. So this report compares TiVo's third quarter of 2016 to Rovi's year-ago period.

On that note, TiVo's third-quarter sales landed at $153.1 million, a 33% year-over-year increase thanks to the merger-powered revenue boost. On the bottom line, GAAP earnings stopped at $0.54 per diluted share, up from a $0.22 loss per share in the third quarter of 2015.

Looking ahead, TiVo now expects full-year revenue of approximately $625 million. That's up from the $505 million target the company guided for three months ago, again mostly due to the closing of the TiVo buyout.

Now what

The two-headed entertainment management business is indeed building a head of steam even as Rovi and TiVo work to fully complete the integration.

In the third quarter, just before putting the final John Hancock on the TiVo merger, Rovi signed a fresh 10-year license agreement with satellite TV broadcaster DISH Network. About a month into the currently ongoing fourth quarter, the recently combined company signed long-term contract renewals with some of the largest consumer electronics providers on the market.

TiVo's revenue streams are getting both stronger and more predictable these days. This is true whether you're comparing this new business to the old TiVo or to the Rovi parent.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TiVo Corporation Stock Quote
TiVo Corporation
TIVO

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.