Rovi Earnings: Here’s Why Investors are Buying Shares Now

Rovi Corporation (NASDAQ:ROVI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.3%.

Rovi Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 14.29% to $0.48 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Rose 12.29% to $157 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rovi Corporation reported adjusted EPS income of $0.48 per share. By that measure, the company beat the mean analyst estimate of $0.44. It beat the average revenue estimate of $154.29 million.

Quoting Management: “As we close out 2012, we are proud of all that we accomplished in this transition year – particularly as we eliminated more than $26 million in annualized costs while working to re-define our strategic focus, reorganize the business around our core assets and improve our product execution,” said Tom Carson, President and CEO of Rovi. “In 2013, we will continue executing on our strategic plan to position Rovi for sustainable growth in years to come. We look forward to strengthening our core business and creating our role at the center of the new value chain as digital entertainment continues to transition to TV Everywhere and IP video delivery.”

Key Stats (on next page)…

Revenue decreased 7.41% from $169.57 million in the previous quarter. EPS decreased 14.29% from $0.56 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.47. For the current year, the average estimate has moved up from a profit of $1.86 to a profit of $2.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)