(TIVO) – TiVo, Inc – Estimated earnings growth for the current quarter, current year, and next year are 37.5%, 45.1%, and 44.6% respectively
TiVo, Inc (TIVO) has announced its fourth earnings surprise in the last four quarters. The company has also recently entered into several very promising partnerships with a prominent online retailer, cable companies, and a respected media outlet.
Company Description
TiVo, Inc. is an innovative home entertainment company that first developed the digital video recorder(DVR). The company has changed the way millions of viewers watch TV and has spurred an advertising revolution as viewers fast forward through conventional 30-second spots.
The company was founded in 1997 and is headquartered in Alviso, California. It employs approximately 500 full-time employees and has a market cap of nearly $860 million.
A Solid Second Quarter
TiVo reported second-quarter fiscal year 2009 earnings of 3 cents per share on August 27th. The street was expecting a loss of 2 cents, which made this the fourth earnings surprise in as many quarters. Net income for the period was $2.9 million or a $20.6 million year-over-year increase, up from a loss of $17.7 million.
New Estimates Are Rising
While the consensus earnings estimate for full-year 2010 is a loss of 8 cents per share, the most recent estimate is a gain of 21 cents per share.
Estimated earnings growth for the current quarter, current year, and next year are 37.5%, 45.1%, and 44.6% respectively.
Buy It Now
The agreement announced on July 22nd, with Amazon.com, will take product placement to a new level, making impulse buying much easier. Users will be able to purchase products featured on their favorite shows without leaving the couch.
When your favorite author is promoting their newest book on a talk show, no need to write a reminder, with a few clicks of the remote control it will be delivered to your door, via Amazon.com. Viewers will be also be able to search for DVDs, books, and other items based on their favorite TV shows, without missing a second of programming.
Cable Giant Expanding Use of TiVo
Comcast continues to expand TiVo service throughout New England. The cable company intends to fund projects to improve TiVo and plans on launching a marketing campaign in September based on the services offered through TiVo.
TiVo service is currently being tested through Cox and should be available in the northeast toward the end of the year.
TiVo Announces Partnership with Entertainment Weekly
On August 27th TiVo announced a partnership with Entertainment Weekly that will give users seamless access to their favorite shows. Entertainment Weekly’s suggested shows, “What to Watch”, will be automatically recorded through TiVo. The service will be marketed and available to viewers sometime this fall.
The Chart
Shares of TIVO have convincingly broken out of a recent channel. The stock had been bound by support around $7.30 and resistance around $7.90, and are now trading above $8 for the first time since May.
Content Courtesy: Zacks Investment Research
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