Zacks Analyst Blog Highlights: Best Buy, TiVO, DirecTV, EchoStar and Dish Network

CHICAGO--(BUSINESS WIRE)--Zacks.com Analyst Blog features: Best Buy Company, Inc. (NYSE: BBY), TiVO Inc. (Nasdaq: TIVO), DirecTV (Nasdaq: DTV), EchoStar Communications Corp. (Nasdaq: SATS) and Dish Network Corp (Nasdaq: DISH).

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Here are highlights from Tuesday’s Analyst Blog:

Best Buy Misses, Shares Tumble

Best Buy Company, Inc. (NYSE: BBY), the leading specialty retailer of consumer electronic products, recently reported first-quarter 2011 results that missed Zacks' expectations, sending shares down $2.53 or 6.2% to $38.52 in early hours trading.

Despite a sustained growth in the top-line, the quarterly earnings of 36 cents a share fell short of the Zacks Consensus Estimate of 50 cents, and also dropped 14.3% from 42 cents delivered in the prior-year quarter. The increase in the top-line was offset by a 6% rise in cost of goods sold and a 12.3% jump in selling, general and administrative expenses.

Best Buy was also able to increase its market share. The company’s domestic market share rose 1% in the quarter. The company has been particularly able to increase its market share since the liquidation of its archrival Circuit City.

Notebook computers, mobile phones and appliances were the strongest categories, offset by softness in gaming, music and movies. Best Buy also notified that it experienced a low-single digit decline in comparable-store sales in televisions. The company indicated that the rise in the sale of television units was offset by falling prices.

TIVO Shares Soar on Buyout Rumor

TiVO Inc. (Nasdaq: TIVO) shares leaped 5.11% and closed at $8.02, following rumors of a buyout by DirecTV (Nasdaq: DTV), according to the Street Insider. However, no concrete information was available from either of the companies.

The shares are currently trading near the low of its 52 week range of $7.10 to $18.93. We expect the shares to trade higher on the back of the buyout speculation.

DirecTV is an important competitor for TiVO. In the satellite business, DIRECTV has introduced DVR technology including both standard definition and high definition broadcasts that competes against TiVO’s offerings.

We believe the acquisition will face antitrust hurdles as it may reduce competition in the DVR market.

On a separate note, TiVO, a leading video recording technology company, has been involved in a long running patent infringement dispute (since 2004) over digital video recorders against EchoStar Communications Corp. (Nasdaq: SATS), the parent company of Dish Network Corp (Nasdaq: DISH).

TiVO recently suffered a severe setback, when the US Patent and Trademark Office (PTO) declared in a ruling that the company’s two patent claims over time warp software are invalid.

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