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

TiVo Corporation TIVO 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 the 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.

Looking for Stocks with Skyrocketing Upside?    

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.      

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.   

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SCIENCE APPLICATIONS INTERNATIONAL CORPORATION (SAIC) : Free Stock Analysis Report
 
TiVo Corporation (TIVO) : Free Stock Analysis Report
 
Avnet, Inc. (AVT) : Free Stock Analysis Report
 
Vishay Intertechnology, Inc. (VSH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research