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 Corporation
Rovi also licensed patents to Google
So what: This isn't Rovi's first whiff -- the company's now missed EPS estimates four quarters in a row. Rovi also reduced its full-year guidance, projecting between $650 million-$680 million in revenue and $1.60-$1.90 in adjusted EPS. That's well below guidance released this May, which called for $755 million-$785 million in revenue and $2.35-$2.65 in adjusted income. The new guidance is in line with analyst expectations, which projected $663 million in full-year revenue and adjusted full-year earnings of $1.73.
Now what: Rovi's continued decline didn't get good news today, but the market may have sell-off fatigue, as the indexes are all up quite a bit. Today's bounce looks like a dead cat to me. There's nothing in the company's latest news that recommends its stock today, especially considering how far it's fallen over the past year.
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Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more news and insights. The Motley Fool has a disclosure policy. We Fools may not 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.