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TiVo (TIVO) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research

TiVo Corporation TIVO is scheduled to report third-quarter 2019 results on Nov 7.

The Zacks Consensus Estimate for third-quarter earnings and revenues is pegged at 15 cents and $149.7 million each, indicating no change in earnings and a revenue decline of 9.13% from the respective year-ago reported numbers.

In the trailing four quarters, the company missed the Zacks Consensus Estimate thrice and topped it once, the average negative earnings surprise being 28.2%.

In the last reported quarter, TiVo’s revenues of $176.2 million surpassed the Zacks Consensus Estimate of $162 million and also inched up 2% year over year, driven by solid growth in core IP Licensing revenues.

Meanwhile, the company’s non-GAAP earnings per share came in at 33 cents, up from 26 cents a year ago.

TiVo Corporation Price and EPS Surprise

TiVo Corporation Price and EPS Surprise

TiVo Corporation price-eps-surprise | TiVo Corporation Quote

Let’s see how things are shaping up for the upcoming announcement.

Factors to Consider

TiVo’s third-quarter results are likely to reflect increasing licensing agreements. Opportunities to thrive in the international markets, content providers and new media are likely to have been consistent positives.

During the quarter under review, the company signed a number of license contracts including those with Vodafone and Liberty Latin America. It also expanded its IP license agreement with LG Electronics (LG). This is likely to have a positive bearing on its upcoming quarterly results.

Moreover, growing adoption of TiVo Experience 4 is expected to have been a positive.

However, higher IP litigation spends on account of investment in the ongoing Comcast litigation might have been a major headwind.

Further, in terms of revenues, the third quarter is traditionally a softer quarter for the company, which makes us apprehensive about its results.

What Our Model Says

The proven Zacks model does not conclusively predict an earnings beat for TiVo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TiVo’s Zacks Rank #2 and an Earnings ESP of 0.00% make surprise prediction difficult.

Stocks to Consider

Here are some stocks worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Activision Blizzard, Inc ATVI has an Earnings ESP of +24.30% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eyenovia, Inc. EYEN has an Earnings ESP of +10.51% and a Zacks Rank of 2.

iHeartMedia, Inc. IHRT has an Earnings ESP of +3.17% and is Zacks #2 Ranked.

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TiVo Corporation (TIVO) : Free Stock Analysis Report
 
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
 
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iHeartMedia, Inc. (IHRT) : Free Stock Analysis Report
 
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