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TiVo (TIVO) to Report Q4 Earnings; What's in the Cards?

TiVo CorporationTIVO is slated to release fourth-quarter 2017 results on Feb 27.

TiVo's fourth-quarter revenues are likely to benefit from the company's new licensing agreements and launch of innovative products. However, elevating operating expenses in order to sustain survive amid stiff competition is expected to dent the company's profitability.

New Licensing Agreements to Drive Revenues

TiVo, one of the world's leading media and entertainment providers, is signing multi-year licensing agreements with customers.

During the soon-to-be-reported quarter, the company announced that its services have been adopted by Altice USA per an agreement spanning over six years. Additionally, its multi-year Intellectual Property (IP) licensing agreement with Sony SNE was renewed during the quarter. These deals are anticipated to bring in additional revenues.

Impressive Product Pipeline

TiVo's product pipeline is a major positive, in our opinion. The company's strategy of offering real-time content delivery significantly enhances the utility of its products, which is a tailwind.

TiVo Roamio has gained significant traction due to its added ability to connect the company's mobile apps, and stream and download live as well as recorded television programs. The company's innovative product pipeline will boost the top line.

Stiff Competition

TiVo has been witnessing stiff competition from Internet video providers such as Alphabet's YouTube, Netflix NFLX , Apple AAPL and Roku, which has been negatively impacting its subscriber base. As a result, TiVo has been increasing its operating expenses to stay ahead of competition, which is likely to hamper the company's profitability.

Notably, the company's total cost and expenses increased 15.2% to $199.5 million in third-quarter 2017 from $173.2 million incurred in the year-ago quarter.

TiVo Corporation Price and EPS Surprise

TiVo Corporation Price and EPS Surprise | TiVo Corporation Quote

What the Zacks Model Unveils?

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

TiVo has a Zacks Rank #3 and an Earnings ESP of 0.00%. This indicates that the company is unlikely to beat estimates. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 39 cents per share. Additionally, analysts polled by Zacks project revenues of roughly $212.2 million.

You can see the complete list of today's Zacks #1 Rank stocks here.

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Netflix, Inc. (NFLX): Free Stock Analysis Report

Sony Corp Ord (SNE): Free Stock Analysis Report

TiVo Corporation (TIVO): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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