) is scheduled to release its fiscal third quarter 2013 results
after market closes on November 28, 2012. In the run up to the
earnings release we do not notice any movement in the analysts'
Previous Quarter Highlights
TiVo's second quarter loss of 23 cents came in line with the
Zacks Consensus Estimate, but it widened from the year-ago
period. Top line increased 6.7% year over year to $65.3 million,
but fell short of the Zacks Consensus Estimate of $67.0 million.
The strong growth was primarily driven by higher Service and
For the third quarter of 2013, TiVo expects service and
technology revenues in the range of $57 million to $59 million.
TiVo expects net loss in the range of $27.0 million to $29.0
million and an adjusted EBITDA loss in the range of ($14.0)
million to ($16.0) million. Litigation costs are expected to hurt
EBITDA in the upcoming quarter.
For further details please read:
TiVo Reports Dismal 2Q
Estimate Revision Trend
Over the past 30 days, none of the 6 analysts covering the
stock revised their estimates in either direction. Thus, the
Zacks Consensus Estimate for the third quarter remained at a loss
of 23 cents, couple of cents wider than TiVo's year-ago loss of
Analysts expect the recent partnerships with Mediacom and
Midcontinent to well compliment the company's focus on
partnerships and strategic alliances to drive subscriber growth.
Moreover, the $250.4 million patent litigation settlement with
Verizon Communications Inc.
) will also be a positive factor for the company. It not only
ensures a recurring revenue stream but also validates TiVo's
We remain optimistic about TiVo's growth potential owing to
new partnerships, product launches and international expansion
opportunities. We believe that TiVo will continue to witness
subscriber growth based on its partnerships with
Virgin Media Inc.
), Suddenlink and several other multiple system operators
("MSO"). Moreover, the successful monetization of patents also
ensures recurring revenue stream for the company.
However, pending patent litigation issues, rising R&D
costs, and higher hardware and sales & marketing costs are
expected to impact TiVo's profitability in the short term.
Increasing competition from cable and satellite providers could
also hurt profitability over the long term.
Thus, we have a Neutral recommendation on TiVo over the long
term. Currently, TiVo has a Zacks #2 Rank, which implies a 'Buy'
rating for the short term.
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TIVO INC (TIVO): Free Stock Analysis Report
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