TiVo Stock Gains in After-Hours Trading on Earnings Beat, Cubiware Purchase

NEW YORK (TheStreet) -- TiVo (TIVO) shares are up 3.96% to $10.77 in after-hours trading on Tuesday after the digital television recording company reported its first quarter earnings results after the closing bell today.

The San Jose, CA-based company reported a first quarter profit of $7.9 million, or 8 cents per share, topping analysts' 7 cent per share expectations by one cent. Revenue for the period rose 7.1% to $114.7 million, also ahead of analysts' $111.8 million estimates.

Separately, the company announced that it purchased Polish pay-tv solutions provider Cubiware for an undisclosed amount in a deal that increases its international market share. The purchase expands TiVo's presence in 25 additional countries.

"Cubiware immediately accelerates our global Pay-TV efforts and enables us to more rapidly reach an even larger portion of the international market, which is expected to grow to more than a billion subscribers by 2020," said TiVo CEO Tom Rogers. "Cubiware's recent growth reflects its strong position in markets that are experiencing rapid pay television expansion.

"This product expansion complements our current international TiVo and DigitalSmiths product lines, enabling us to deliver a comprehensive portfolio of solutions for video distributors across different distribution platforms -- on premise, cloud or hybrid environments," said Rogers.

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

"We rate TIVO INC (TIVO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and generally higher debt management risk."

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

TIVO Chart TIVO data by YCharts

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