Ahead of the Bell: TiVo jumps following 2Q reportAugust 28, 2013 @ 6:14 am
(AP) - TiVo climbed more than 3 percent before markets opened Wednesday after the pioneer in digital video recording technology reported better-than-expected revenue in its most recent quarter and issued an optimistic outlook.
The company has been embroiled in legal suits with pay TV companies, saying that they are using its patented technology in DVRs. But the company said late Tuesday that it believes it has now achieved sustained profitability as it posted solid revenue increases from its technology and hardware.
That is a significant milestone, according to Jefferies & Co.
Analyst Brian Fitzgerald sees plenty of opportunity for TiVo's core business, and company management recognizes growth potential in Europe and Latin America, among other markets. He raised his price target on the shares to $15 from $14.
The revenue outlook for the third quarter was also surprisingly strong, Fitzgerald said.
Overall revenue in the most recent quarter grew 53 percent to $100.1 million, which topped Wall Street expectations for $91.1 million, according to FactSet.
Shares of TiVo Inc., based in San Jose, Calif., climbed more than 3 percent, or 37 cents, to $11.34 in pre-market trading. The stock price has ranged from $8.73 to $14.10 over the past year.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Get Out of Jail Free?
Why Seattle firefighters won't face felony charges in alleged homeless beating
Seattle deploys one of its most popular work crews to clean up the city
Please login below with your Facebook, Twitter, Google+ or Disqus account. Existing MyNorthwest account holders will need to create a new Disqus account or use one of the social logins provided below. Thank you.