Rovi Corp Second Quarter Earnings Sneak Peek

Rovi Corporation (NASDAQ:ROVI) will unveil its latest earnings on Thursday, August 2, 2012. Rovi focuses on powering the discovery and enjoyment of digital entertainment by providing companies a broad set of integrated solutions.

Rovi Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 21 cents per share, a decline of 48.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 42 cents during the last month. Analysts are projecting profit to rise by 79.7% versus last year to $1.15.

Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 4 cents, reporting profit of of 39 cents per share against a mean estimate of net income of 43 cents per share.

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A Look Back: In the first quarter, the company swung to a loss of $4.6 million (4 cents a share) from a profit of $17 million (15 cents) a year earlier, missing analyst expectations. Revenue rose 8.4% to $175 million from $161.5 million.

Stock Price Performance: Between May 2, 2012 and July 27, 2012, the stock price fell $15.23 (-53.5%), from $28.46 to $13.23. The stock price saw one of its best stretches over the last year between July 18, 2012 and July 27, 2012, when shares rose for eight straight days, increasing 32.2% (+$3.22) over that span. It saw one of its worst periods between May 1, 2012 and May 10, 2012 when shares fell for eight straight days, dropping 9.7% (-$2.79) over that span.

Wall St. Revenue Expectations: On average, analysts predict $158 million in revenue this quarter, a decline of 18.1% from the year-ago quarter. Analysts are forecasting total revenue of $664.5 million for the year, a decline of 7.2% from last year’s revenue of $715.7 million.

Key Stats:

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 0.3% in the fourth quarter of the last fiscal year after increasing in the first quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.75 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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