Earnings Preview: Macrovision Solutions

Macrovision Solutions (MVSN) is expected to report Q2 earnings after makret close Thursday, August 7, with a conference call scheduled for 5:00 p.m. ET.

Guidance

The consensus estimate is 22c for EPS and $149.29M for revenue, according to First Call.

Analyst Views

Deutsche maintains its Hold rating ahead of Macrovision's earnings report. The firm expects an in-line, but complex, earnings report. Even with potential strength in the underlying Gemstar Guidance business, Deutsche expects the shares to be range bound until the company can prove to investors it has improved execution, stabilized the Macrovision ACP business and divested itself of Gemstar's media businesses. With the wide range of estimates, Deutsche expects complexity in the results. The firm estimates revenue of $154M and EPS of 18c. The range of EPS forecasts for consensus is 15c to 33c. Deutsche anticipates a lot of noise around the numbers given the discontinued operations, restructurings and change in reporting formats.

While top-line growth could be impacted by a tougher consumer spending environment, it thinks the company has likely made good progress extracting cost synergies from the Gemstar acquisition. Deutsche believes the sale of Gemstar's media assets is important for building many investor's confidence in the stock. The firm does not expect a material announcement on the earnings call, but it hopes to gain further visibility into the potential timing and value.

Kaufman Brothers is positive on the shares, and thinks Macrovision has the potential to become a powerhouse in digital media licensing and looks for the company's valuation to expand as execution risk become less of a factor.