Roku Earnings: What To Look For From ROKU

Streaming TV platform Roku (NASDAQ: ROKU) will be announcing earnings results tomorrow after market close. Here’s what you need to know.

Roku beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $968.2 million, up 14.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and solid growth in its users. It reported 83.6 million monthly active users, up 13.7% year on year.

Is Roku a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Roku’s revenue to grow 11.4% year on year to $1.02 billion, slowing from the 19.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.34 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roku has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.9% on average.

Looking at Roku’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.

Read our full analysis of Netflix’s results here and Coursera’s results here.

Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Roku is up 1.9% during the same time and is heading into earnings with an average analyst price target of $76.09 (compared to the current share price of $76.10).

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