Shares of TiVo Inc. rose Tuesday after the digital video recorder maker said its fourth-quarter loss narrowed due to decreased costs, even though revenue fell.
TiVo shares rose 90 cents, or 13.6 percent, to $7.50 in midday trading. In the past year, the stock has traded between $4 and $9.25.
On Monday, the Alviso, Calif.-based company said it lost 4 cents per share in the fourth quarter, compared to 6 cents per share in the year-ago period. Revenue fell 20 percent to $59.2 million.
The results beat estimates of analysts polled by Thomson Reuters. On average, the analysts expected a bigger loss of 10 cents per share on lower revenue of $54.7 million.
In a client note Tuesday, Caris & Co. analyst David Miller reiterated his "Above Average" rating and $10 price target for the stock, calling its earnings-per-share results a "nice beat."
Miller called Tivo's first-quarter outlook for $47 million to $49 million in service and technology revenue "deliberately conservative." He is looking for $50.9 million.
He added that while he is positive on the company's fourth-quarter results and thinks its user interface is "second to none in terms of viability and convenience," the company is facing numerous issues like a declining subscriber base, "murky" distribution strategy with cable providers and "inconsistent" pricing in its independent business.
