XPER - No The Big Comcast Deal Isn't a Game-Changer For Xperi Holdings
Monday was a big day for TiVo's parent company, Xperi Holdings (NASDAQ: XPER) . How big? Well, the mobile computing and media technology researcher reported earnings after the closing bell, and that important business update wasn't the main event. Share prices raced more than 25% higher in after-hours trading because Xperi also announced a long-term TiVo license deal with cable giant Comcast (NASDAQ: CMCSA) .
Let's get Xperi's third-quarter earnings out of the way first. Sales more than tripled year over year to $203 million while the bottom line swung from a loss to earnings of $0.19 per diluted share. The merger between Xperi and TiVo closed in June 2020, making year-over-year comparisons less interesting. Your average Wall Street analyst expected earnings near $0.20 per share on sales in the neighborhood of $194 million.
So that's a mixed report, showing healthy progress toward integrating TiVo's media business into Xperi's portfolio of connected car, semiconductor packaging, and immersive media technologies. Nothing terribly exciting, and certainly not good enough to pull the company formerly known as DTS out of a long slump. The stock closed Monday's trading 25% lower on a year-to-date basis and the after-hours jump barely returned Xperi to January's starting point.
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No, The Big Comcast Deal Isn't a Game-Changer For Xperi Holdings