The 10-second takeaway
For the quarter ended June 30 (Q2), Rovi missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew significantly. GAAP loss per share increased.
Gross margins grew, operating margins grew, net margins dropped.
Rovi reported revenue of $146.4 million. The 12 analysts polled by S&P Capital IQ looked for revenue of $152.8 million on the same basis. GAAP reported sales were 7.6% lower than the prior-year quarter's $158.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.46. The 12 earnings estimates compiled by S&P Capital IQ forecast $0.46 per share. Non-GAAP EPS of $0.46 for Q2 were 24% higher than the prior-year quarter's $0.37 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were -$0.75 for Q2 against -$0.17 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 84.3%, 420 basis points better than the prior-year quarter. Operating margin was 11.8%, 690 basis points better than the prior-year quarter. Net margin was -50.6%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $165.9 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $645.3 million. The average EPS estimate is $2.09.
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 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Rovi a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rovi is hold, with an average price target of $26.25.
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