The 10-second takeaway
For the quarter ended Oct. 31 (Q3), TiVo beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins increased across the board.
TiVo recorded revenue of $61.0 million. The 10 analysts polled by S&P Capital IQ expected to see a top line of $60.0 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $64.8 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 -$0.33. The six earnings estimates compiled by S&P Capital IQ forecast -$0.24 per share. GAAP EPS were $0.44 for Q3 versus -$0.21 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 50.7%, 290 basis points better than the prior-year quarter. Operating margin was -21.9%, 1,440 basis points better than the prior-year quarter. Net margin was 72.0%, 10,980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $64.3 million. On the bottom line, the average EPS estimate is -$0.14.
Next year's average estimate for revenue is $233.5 million. The average EPS estimate is -$0.83.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 834 members out of 1,085 rating the stock outperform, and 251 members rating it underperform. Among 252 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 181 give TiVo a green thumbs-up, and 71 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TiVo is outperform, with an average price target of $14.65.
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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. Motley Fool newsletter services recommend TiVo. 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.