Can TiVo Inc. (TIVO) Keep The Earnings Streak Alive In Q1?
Zacks Investment Research | May 26, 2016 10:09PM ET
TiVo Inc. (NASDAQ:TIVO) is set to report first quarter fiscal 2017 results on May 31. Last quarter, the company posted a positive earnings surprise of 183.3%. Notably, TiVo has outperformed the Zacks Consensus Estimate thrice in the last four quarters with an average positive surprise of 55.7%.
Let us see how things are shaping up for this announcement.
Factors to Consider
TiVo reported mixed results in the fourth quarter of fiscal 2016, with its bottom line surpassing the Zacks Consensus Estimate and the top line missing the same. Year-over-year revenue comparisons were also favorable. We are optimistic about its prospects owing to its sustained focus on product innovation and subscriber addition. Further, the increased number of distribution deals with cable companies will support TiVo’s expansion plans and strengthen the customer base, which in turn will boost revenues.
We believe that TiVo has significant growth opportunities in Western Europe and Latin America, given its partnerships with local providers. Its strong balance sheet will also allow it to pursue strategic acquisitions and aggressive share buyback programs, thereby boosting near-term growth.
However, increasing competition from the likes of Dish Network (NASDAQ:DISH) and Cablevision Systems Corporation (NYSE:CVC) seems to be the primary headwind in the near term.
Earnings Whispers
Our proven model does not conclusively show that TiVo will beat earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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