Macrovision Solutions Corp.

Macrovision Solutions Corp. (MVSN) recently acquired a new company and shed some of its divisions in order to better position itself for future gains. The analyst community is projecting 31% earnings growth in the next-year period.

Company Description

Macrovision Solutions Corp. develops digital communications tools and solutions in the United States and Internationally. The company was founded in 1983 and has a market cap of $1.52 billion.

Fourth-Quarter Results

Macrovision reported fourth-quarter results on Feb 10 that were significantly effected by the company's acquisition of Gemstar and agreements to sell multiple division, including the TV Guide Network and TV Guide Online.

Revenue was up 6% from last year to $118.2 million. Due to the previously mentioned one-time items, the company posted a loss of $209.9 million.

Guidance

But Macrovision is optimistic about its future, reiterating its full-year revenue guidance between $435 and $475 and EPS guidance between $1.15 and $1.45 per share.

Estimates

The analyst community is a little more conservative, targeting current-year earnings of $1.18 per share. But the next-year estimate is pegged at $1.55, a 31% earnings growth projection.

Valuations

Based on the current-year estimate, this stock has a forward P/E multiple of 12X, a reasonable valuation for a company that is projected to grow its earnings by more than 30% in the next-year period.

The Chart

Shares of MVSN have been rallying since bottoming out in late November just above $8. Since then, this stock has topped off above the $15 mark, where some resistance has developed. Take a look at the chart below.