Rovi Corp Third Quarter Earnings Sneak Peek

Rovi Corporation (NASDAQ:ROVI) will unveil its latest earnings on Thursday, November 1, 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 analyst estimate is for net income of 24 cents per share, a decline of 20% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 22 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 24 cents during the last month. Analysts are projecting profit to rise by 81.2% compared to last year’s $1.16.

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 one cent, reporting profit of of 20 cents per share against a mean estimate of net income of 21 cents per share.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $18.5 million (17 cents a share) from a loss of $10.7 million (10 cents) a year earlier, missing analyst expectations. Revenue fell 18% to $158.3 million from $193 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 18% in revenue from the year-earlier quarter to $161.1 million.

Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had fallen $1.36 (-9.1%), from $14.93 to $13.57. The stock price saw one of its best stretches over the last year between July 18, 2012 and August 1, 2012, when shares rose for 11 straight days, increasing 34% (+$3.40) over that span. It saw one of its worst periods between September 14, 2012 and September 27, 2012 when shares fell for 10 straight days, dropping 13.6% (-$2.25) over that span.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 8.4% in the the first quarter after dropping in the second 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 7.23 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. The company regressed in this liquidity measure from 7.75 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 5.4% to $1.06 billion while liabilities rose by 1.4% to $147 million.

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

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