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Analysts Weigh In On Tivo's Earnings Report

Luke Jacobi

TiVo (NASDAQ: TIVO) shares were up almost five percent after the company released the results of its first quarter after the close Thursday.

EPS beat analyst estimates by one cent at $0.07 and is significantly higher than a $0.09 loss for the same quarter last year. Revenue for the quarter was slightly below the estimate at $107.06 million.

Brean Capital: Maintains Buy, $16 Price Target

Brean liked Tivo’s earnings report, specifically commenting on a 33 percent year-over-year increase in subscribers.

Looking forward, Brean thinks the company is positioned well, saying, “TiVo does something that is very difficult, very well. Virtually every MCVP is committed to a TVE strategy, but few have committed to a means of getting there, as consolidation brought technology and spending decision to a standstill. However, now that the major player have made their moves, we see the spigot opening.”

Lake Street: Maintains Buy, $15 Price Target

Lake Street was also fond of TiVo’s report, especially results from its MSO business, which Lake Street believes will be the primary value driver. Regarding valuation, Lake Street commented, “With >$700 million in cash, and additional >$300M in cash over the life of the settlement license period (doesn’t include potential upside), the current implied value of the enterprise remains less than $500M – still too low in our opinion.

"For the stock to work significantly higher from here, management will need to demonstrate scale on its MSO deployments and prove a savvy allocator of capital given its recent Digital Smiths acquisition for $135M.”

Topeka: Maintains Buy, $17 Price Target

Unlike Brean and Lake Street, TiVo’s revenue was lower than Topeka expected. Analyst David Miller commented that although the income statement was sloppy, he likes the 33.4 percent increase in global subscribers.

Shares of TiVo were last up 3.6 percent at $12.33 in Friday's session.

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