Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results tomorrow after the bell. Here's what you need to know.
Last quarter Roku reported revenues of $984.4 million, up 13.5% year on year, beating analyst revenue expectations by 1.7%. It was a decent quarter for the company, with strong sales guidance for the next quarter but slow revenue growth. The company reported 80 million monthly active users, up 14.3% year on year.
Is Roku buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Roku's revenue to grow 14.8% year on year to $850.6 million, improving on the 1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.64 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 4.7%.
Looking at Roku's peers in the consumer internet segment, only Netflix has so far reported results, delivering top-line growth of 14.8% year on year, and beating analyst estimates by 1%. The stock was down 9.1% on the results.
Read our full analysis of Netflix's earnings results here.There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4% over the last month. Roku is down 4.4% during the same time, and is heading into the earnings with analyst price target of $81.4, compared to share price of $61.83.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.