Earnings Cheat Sheet: TiVo Beats Estimates

Earnings: Q2 loss of ($.13) vs. ($.15) consensus and a loss of ($.03 ) in Q2 last year.

Revenue: Decreased 15.9% Year-over-Year from $48.8 Million last year t0 $42.1 Million this year in the same period, versus $41.87 Million consensus, passing expectations.

Tom Rogers, President and CEO of TiVo, stated “TiVo remains on solid financial footing, exceeding our revenue and earnings guidance and with a strong balance sheet of over $240 million in cash and short-term investments, and no debt.”

Comment: Shares of TIVO are trading down 1.71% following the company’s earnings release after-the-bell, trading at $8.32 per share, compared to the closing price of $8.47.

In the chart above, TIVO shares are trading above the 50-day moving average, yet below the 200-day moving average. The company has been plagued by a lawsuit with EchoStar (SATS), but exudes confidence in their ability to win the litigation suit. The proof will reside in the ultimate court decision. Meanwhile, in the 2nd quarter, TIVO inked deals with Suddenlink Communications, the seventh largest U.S. cable operator currently with 1.3 million subscribers, and Cox Communications, the third largest U.S. cable television operator. A key attraction to the stock right now is TIVO’s cash position of over $2 per share and zero debt on their balance sheet. TIVO stock hit a 52-week low in July of this year. Since then, TIVO shares have rebounded and consolidated recently. If TIVO can continue to grow sales while reducing costs, then TIVO shares could become even more compelling than they are today.