506393

Robinhood Earnings: What To Look For From HOOD


Jabin Bastian /
2024/08/06 3:02 am EDT

Financial services company Robinhood (NASDAQ:HOOD) will be reporting earnings tomorrow after market close. Here's what to expect.

Robinhood beat analysts' revenue expectations by 11.4% last quarter, reporting revenues of $618 million, up 40.1% year on year. It was a very strong quarter for the company, with exceptional revenue growth and a narrow beat of analysts' user estimates. It reported 23.9 million users, up 3.5% year on year.

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

This quarter, analysts are expecting Robinhood's revenue to grow 32.2% year on year to $642.6 million, slowing from the 52.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Robinhood Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Robinhood has missed Wall Street's revenue estimates four times over the last two years.

Looking at Robinhood's peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and EverQuote reported revenues up 72.3%, topping estimates by 13.9%. MercadoLibre traded up 10.7% following the results.

Read our full analysis of MercadoLibre's results here and EverQuote's results here.

Inflation fears have put pressure on growth stocks, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. Robinhood is down 20.8% during the same time and is heading into earnings with an average analyst price target of $22.9 (compared to the current share price of $17.49).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.