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Will TiVo Corp (TIVO) Disappoint Estimates in Q3 Earnings?

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TiVo Corporation is set to report third-quarter 2016 results on Nov 3. It should be noted that TiVo Corporation was formerly known as Rovi Corporation. Upon successfully completing the acquisition of TiVo Inc. early this September, Rovi adopted the iconic TiVo brand name.

Hence, this will be the first quarterly results of the combined company. Let us see how things are shaping up for this announcement.

Factors to Consider

Prior to the acquisition, Rovi used to provide a set of solutions that allowed businesses to protect, enable and distribute digital goods to consumers, helping them discover and manage digital media across multiple channels. On the other hand, TiVo Inc. pioneered a brand new category of products by developing the first commercially available digital video recorder. However, over the years, the company expanded its capabilities beyond hardware sales and patent licensing to online subscription services.

Therefore, the merger has brought together two leading players in the media entertainment industry with complementary products and services as well as a number of patented technologies. The new TiVo Corporation has now become the global leader in entertainment technology and audience insights. The company has a diverse product portfolio that ranges from interactive program guide to the DVR. The combined company has emerged as the world’s leading media and entertainment provider to deliver the ultimate entertainment experience.

However, the fact that TiVo Inc. did not release its results for second-quarter fiscal 2017 prior to its merger with Rovi Corporation makes us increasingly cautious about the new company’s near-term prospects.

Moreover, post merger, the combined company has neither shed light on the integration of the businesses nor has it provided any insight into revenues or earnings. Additionally, increasing competition from the likes of Dish Network Corp. and Cablevision Systems Corp. seems to be the primary headwind in the near term.

TIVO CORP Price and EPS Surprise

TIVO CORP Price and EPS Surprise | TIVO CORP Quote

Earnings Whispers

Our proven model does not conclusively show that TiVo Corporation will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Earnings ESP for TiVo Corporation is 0.00%. This is because the Most Accurate estimate of 28 cents is in line with the Zacks Consensus Estimate. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank: TiVo has a Zacks Rank #5 (Strong Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks to Consider

Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:

Stratasys Ltd. (SSYS - Free Report) , with an Earnings ESP of +41.67% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank stocks here.

Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #2.

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