TiVo (TIVO) to Report Q2 Earnings: What's in the Cards?

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TiVo CorporationTIVO is scheduled to report second-quarter 2018 results on Aug 8.

In the trailing four quarters, the company missed the Zacks Consensus Estimate thrice and topped it once, resulting in an average negative earnings surprise of 6.43%.

In the last reported quarter, TiVo's revenues decreased 7.7% year over year to $189.8 million and also missed the Zacks Consensus Estimate of $193 million. The expiration of the Time Warp deal and the company's intent to move away from hardware and analog products were the key threats.

Notably, the Zacks Consensus Estimate for second-quarter earnings and revenues is pegged at 27 cents and $178.4 million, respectively. The estimates, when compared with the year-ago quarter's actual figures, indicate decline of 25% for earnings and 14.5% for revenues.

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

Factors to Consider

TiVo is banking on new agreements signed with companies like Vizio, Argos and Mediacom Communications and its new solution TiVo Experience 4 that was launched in the fourth quarter.

During the quarter, the company reached a multi-year IP licensing deal with European retailer Fnac Darty Group.

Moreover, growing adoption of Experience 4 is expected to be a positive. The company collaborated with RCN and Atlantic Broadband to roll it out to more customers.

However, the adoption of ASC 606 is anticipated to keep revenues under pressure. TiVo's rising operating expenses are expected to dampen the company's profits. Moreover, the ongoing litigation with Comcast is also a major headwind.

What Our Model Says

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 . Zacks Rank #4 (Sell) or #5 (Strong Sell) stocks are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Tivo currently carries a Zacks Rank #3 and has an Earnings ESP of -25.00%.

TiVo Corporation Price and EPS Surprise

TiVo Corporation Price and EPS Surprise | TiVo Corporation Quote

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Science Applications SAIC with an Earnings ESP of +1.70% and a Zacks Rank #1. You can see t he complete list of today's Zacks #1 Rank stocks here .

Vishay Intertechnology VSH with an Earnings ESP of +2.41% and a Zacks Rank #1.

Avnet AVT with an Earnings ESP of +1.37% and a Zacks Rank #2.

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TiVo Corporation (TIVO): 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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