Rovi Corp Earnings Cheat Sheet: Net Income Declines Year over Year

Wall St. Cheat Sheet

Rising costs hurt Rovi Corporation in the third quarter as profit dropped from a year earlier. Rovi focuses on powering the discovery and enjoyment of digital entertainment by providing companies a broad set of integrated solutions.

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Rovi Earnings Cheat Sheet for the Third Quarter

Results: Net income for Rovi Corporation fell to $1.8 million (2 cents per share) vs. $36.4 million (33 cents per share) a year earlier. This is a decline of 95.2% from the year earlier quarter.

Revenue: Rose 42.4% to $196.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ROVI reported adjusted net income of 63 cents per share. By that measure, the company beat the mean estimate of 46 cents per share. Analysts were expecting revenue of $197.9 million.

Quoting Management: “We are pleased with our progress in 2011 and the continued success across our business.” said Fred Amoroso, President and CEO of Rovi.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 43.2% to $193 million in the second quarter. The figure rose 24.1% in the first quarter from the year earlier and climbed 1.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 41 cents versus a mean estimate of net income of 49 cents per share.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 0.2 percentage point to 82.4% from the quarter earlier quarter. In the first quarter, the figure rose 4.7 percentage points to 83.5% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 60 cents a share to 58 cents over the last ninety days. At $2.08 per share, the average estimate for the fiscal year has fallen from $2.12 ninety days ago.

Competitors to Watch: Amazon.com, Inc. , Apple Inc. , TiVo Inc. , News Corporation , HSW International, Inc. , Martha Stewart Living Omnimedia, Inc. , Meredith Corporation , PRIMEDIA Inc. , and Barnes & Noble, Inc. .

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

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