The 10-second takeaway
For the quarter ended March 31 (Q1), Rovi met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Rovi chalked up revenue of $175.0 million. The 15 analysts polled by S&P Capital IQ expected a top line of $177.6 million on the same basis. GAAP reported sales were 8.4% higher than the prior-year quarter's $161.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS were -$0.05 for Q1 versus $0.15 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 83.0%, 140 basis points worse than the prior-year quarter. Operating margin was 13.8%, 330 basis points worse than the prior-year quarter. Net margin was -2.6%, 1,320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $184.1 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $770.2 million. The average EPS estimate is $2.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members out of 187 rating the stock outperform, and 23 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Rovi a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rovi is outperform, with an average price target of $41.83.
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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. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.