Analysts on Wall Street project that Roku (ROKU) will announce quarterly earnings of $0.28 per share in its forthcoming report, representing an increase of 216.7% year over year. Revenues are projected to reach $1.35 billion, increasing 12.6% from the same quarter last year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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.
In light of this perspective, let's dive into the average estimates of certain Roku metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Net Revenue- Platform' of $1.19 billion. The estimate points to a change of +15.2% from the year-ago quarter.
Analysts' assessment points toward 'Net Revenue- Devices' reaching $160.48 million. The estimate suggests a change of -3.2% year over year.
The combined assessment of analysts suggests that 'Streaming Hours' will likely reach 38.89 billion. The estimate is in contrast to the year-ago figure of 34.10 billion.
The consensus among analysts is that 'Gross Profit- Platform' will reach $620.31 million. Compared to the current estimate, the company reported $559.93 million in the same quarter of the previous year.
View all Key Company Metrics for Roku here>>>
Roku shares have witnessed a change of -22.8% in the past month, in contrast to the Zacks S&P 500 composite's -0.2% 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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