Why TiVo (TIVO) Stock Is Up in After-Hours Trading Today

NEW YORK (TheStreet) -- TiVo (TIVO) was gaining 1.4% to $14.10 after-hours Tuesday after announcing a $350 million share repurchase plan.

The company said it plans to repurchase the first $100 million of stock in its current fiscal year. The other $250 million worth of shares will be repurchased in the next two years.

"On the capital allocation front, we have made meaningful progress in our efforts to deploy our significant cash resources to drive value" TiVo president and CEO Tom Rogers said in a press release. "We are taking another step forward by announcing a new $350 million stock repurchase program, representing a significant portion of our current cash & short-term investments."

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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 a few notable strengths, 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, solid stock price performance, notable return on equity, reasonable valuation levels and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.5%. Since the same quarter one year prior, revenues rose by 29.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 177.77% and other important driving factors, this stock has surged by 27.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TIVO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Software industry and the overall market, TIVO INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 178.7% when compared to the same quarter one year prior, rising from -$10.32 million to $8.12 million.
  • You can view the full analysis from the report here: TIVO Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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