Rovi (Nasdaq: ROVI) reported earnings on Nov. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rovi beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.

Gross margins contracted, operating margins increased, net margins contracted.

Revenue details
Rovi reported revenue of $169.6 million. The 14 analysts polled by S&P Capital IQ expected net sales of $161.1 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $196.5 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 $0.50. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS were -$0.13 for Q3 compared to $0.02 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 80.7%, 170 basis points worse than the prior-year quarter. Operating margin was 13.8%, 130 basis points better than the prior-year quarter. Net margin was -7.9%, 880 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $166.8 million. On the bottom line, the average EPS estimate is $0.42.

Next year's average estimate for revenue is $661.9 million. The average EPS estimate is $1.74.

Investor sentiment
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 52 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 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 $18.24.

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