In its upcoming report, Roku (ROKU) is predicted by Wall Street analysts to post quarterly earnings of $0.07 per share, reflecting an increase of 216.7% compared to the same period last year. Revenues are forecasted to be $1.21 billion, representing a year-over-year increase of 13.5%.
Over the last 30 days, there has been an upward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Roku metrics that Wall Street analysts commonly model and monitor.
It is projected by analysts that the 'Net Revenue- Platform' will reach $1.05 billion. The estimate indicates a change of +15.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Net Revenue- Devices' will likely reach $149.52 million. The estimate points to a change of -2.9% from the year-ago quarter.
Analysts predict that the 'Streaming Hours' will reach 37.03 billion. The estimate compares to the year-ago value of 32.00 billion.
Analysts' assessment points toward 'Gross Profit- Platform' reaching $539.97 million. Compared to the current estimate, the company reported $491.80 million in the same quarter of the previous year.
View all Key Company Metrics for Roku here>>>
Roku shares have witnessed a change of -3.3% in the past month, in contrast to the Zacks S&P 500 composite's +2.5% move. With a Zacks Rank #3 (Hold), ROKU is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Roku, Inc. (ROKU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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