The 10-second takeaway
For the quarter ended March 31 (Q1), Rovi beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share dropped significantly. GAAP loss per share increased.
Margins dropped across the board.
Rovi booked revenue of $154.7 million. The 12 analysts polled by S&P Capital IQ hoped for sales of $152.6 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $175.0 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 $0.45. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. Non-GAAP EPS of $0.45 for Q1 were 20% lower than the prior-year quarter's $0.56 per share. (The prior-year quarter included -$0.06 per share in earnings from discontinued operations.) GAAP EPS were -$0.26 for Q1 against -$0.05 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 80.1%, 290 basis points worse than the prior-year quarter. Operating margin was 10.9%, 290 basis points worse than the prior-year quarter. Net margin was -16.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $153.7 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $647.1 million. The average EPS estimate is $2.08.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 179 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 $22.70.
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