The cable DVR provider reported third-quarter net income of 10 cents, 4 cents higher than analysts polled by Thomson Reuters had anticipated. Service and technology sales (excluding hardware sales) came in at $81.7 million, 34% more than the year-ago quarter, and beat consensus by $400,000.
Boosting sales were strong growth in cable television subscriptions. In the third-quarter, the company added 295,000 subscribers, likely lured by TiVo's offering which allows additional access to streaming services such as Netflix (NFLX) and YouTube. Its total subscriber base, which has grown for nine consecutive quarters, sits at approximately 3.9 million, 32% higher than a year earlier.
CEO Tom Rogers said in a statement the quarter marked "our strongest cable distribution results to date as well as best subscription growth in several years. In fact, [it's] the best quarter for TiVo subscription growth since TiVo began mass distribution of its technology and services in the cable DVR market."
For its fourth-quarter, the San Jose-based business foresees service and technology revenue between $83 million and $85 million, approximately 30% higher than the same period a year earlier. Forecasted sales were in line with consensus.
Analysts were mostly positive on the stock. Goldman Sachs raised its price target to $16 from $15, "as we continue to see stronger business traction and improving profitability trends as near- to mid-term catalysts for the shares."