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TiVo Inc. (TIVO - Analyst Report) is set to report its fourth quarter 2013 results on Feb 26. In the prior quarter, the company posted a positive surprise of 43.5%. Let’s see how things are shaping up for the company in this quarter.

Growth Factors This Past Quarter

TiVo reported better-than-expected third quarter 2013 results on the back of higher subscriber growth and lower subscriber acquisition costs. Moreover, higher Service and Technology revenue coupled with increased hardware revenue impacted the top line positively.

Moreover, litigation proceeds from Verizon (VZ - Analyst Report) boosted operating results. Management expects fourth quarter revenue to gain from the MSO revenue and Verizon licensing revenue. Moreover, it expects subscription acquisition costs to be lower on a year-over year basis, primarily due to higher subscription additions and a shift in mix to higher SKU’s.

Earnings Whispers?

The Zacks Consensus Estimate for the fourth quarter stands at a loss of 12 cents per share while that for fiscal 2013 stands at a loss of 5 cents per share.

Estimate revisions have been minimal in the last 30 days, while two upward estimate revisions were made in the past 60 days. Over the last 60 days, fourth quarter loss as per Zacks Consensus Estimate has improved by a penny to a loss of 12 cents. For fiscal 2013, over the last 60 days, loss as per Zacks Consensus Estimate improved by a penny to 5 cents.

The lack of downward movement in estimates signals that the fourth quarter might not be too different from the past quarters. Moreover, the stock carries a Zacks Rank #2 (Buy).

We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Our model states that a stock needs to have both a positive Zacks Earnings ESP and a Zacks Rank of #1, #2 or #3 to beat earnings estimates. You could, however, consider stocks like:

Autodesk Inc. (ADSK - Analyst Report), which has a Zacks Earnings ESP of 15.79% and Zacks Rank #2 (Buy)

DISH Network Corp (DISH - Analyst Report), with Zacks Earnings ESP of 10.53% and Zacks Rank #3 (Hold).

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