TiVo Downgraded to Strong Sell - Analyst Blog
On Mar 1, 2014, Zacks Investment
Research downgraded TiVo Inc. (TIVO) to a Zacks
Rank #5 (Strong Sell).
Why the Downgrade?
TiVo reported a mixed fourth quarter of fiscal 2014. Although
earnings of 5 cents per share beat the Zacks Consensus Estimate by
a penny, revenues of $106.3 million were well below the Zacks
Consensus Estimate of $111.0 million.
During the quarter, the company completed the acquisition of
cloud-based content discovery and recommendation service provider,
Digitalsmiths. Owing to the gains from additional subscriptions,
TiVo management believes that it is on track to exceed adjusted
earnings before interest, tax, depreciation and amortization
(EBITDA) of $100.0 million on an annual basis in 2015.
The company also believes that the highly efficient nature of
Digitalsmiths software will drive margins, going forward, as well
as contribute significantly to TiVo’s overall adjusted EBITDA in
fiscal 2016.
Although we believe TiVo has significant growth opportunities in
Western Europe and Latin America, given its partnerships with local
providers, increasing competition from satellite and cable
companies is a significant headwind.
We believe TiVo should to focus on increasing its subscriber base,
going forward. In order to do so, the company needs to invest in
product development and sales & marketing costs in the near
term. We believe rising operating expenses will continue to
negatively impact its profitability in the near term.
Estimate Revisions
The Zacks Consensus Estimate for the first quarter of 2015 has
declined 28.6% (2 cents) to 5 cents over the last 7 days.
The Zacks Consensus Estimate for 2015 decreased 12.5% (4 cents) to
28 cents per share over the last 7 days. The Zacks Consensus
Estimate for 2016 dropped 8.0% (4 cents) to 46 cents per share over
the same period.
Other Stocks to Consider
Some better-ranked stocks in the technology sector include
Micron Technology (MU), Facebook
(FB) and Splunk Inc. (SPLK). All these
stocks have a Zacks Rank #2 (Buy).
FACEBOOK INC-A (FB): Free Stock Analysis Report
MICRON TECH (MU): Free Stock Analysis Report
SPLUNK INC (SPLK): Free Stock Analysis Report
TIVO INC (TIVO): Free Stock Analysis Report
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Zacks Investment Research
TiVo (NASDAQ:TIVO)
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TiVo (NASDAQ:TIVO)
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から 10 2023 まで 10 2024
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