Why TiVo (TIVO) Is Up Today

NEW YORK (TheStreet) -- TiVo (TIVO) was gaining 5.7% to $13.56 Thursday after missing analysts' estimate for earnings, but revenues beat revenue forecasts.

For the fourth-quarter, TiVo earned 1 cent a share. Analysts surveyed by Thomson Reuters expected earnings of 4 cents a share for the quarter. Revenue grew 61.8% from the year-ago quarter to $106.3 million, compared to estimates of $88.9 million.

TiVo said that it expects to benefit from the proposed merger of Comcast (CMCSA) and Time Warner Cable (TWC). TiVo has an agreement with Comcast that integrates the cable company's Xfinity On Demand digital movie and TV show store into TiVo's set-top boxes. The cable company has plans to expand that integration.

In the fourth quarter TiVo added 319,000 net subscribers, including 313,000 subscribers through its partnerships with cable and satellite providers.

Must read: TiVo searches for an edge in Digitalsmiths deal

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TheStreet Ratings team rates TIVO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate TIVO INC (TIVO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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