Wall Street analysts expect Roku (ROKU) to post quarterly loss of $0.20 per share in its upcoming report, which indicates a year-over-year increase of 42.9%. Revenues are expected to be $1 billion, up 14% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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.
Based on the collective assessment of analysts, 'Net Revenue- Platform' should arrive at $877.40 million. The estimate indicates a year-over-year change of +16.2%.
According to the collective judgment of analysts, 'Net Revenue- Devices' should come in at $127.20 million. The estimate indicates a year-over-year change of +0.6%.
The average prediction of analysts places 'Streaming Households (Active Accounts)' at 91.55 million. The estimate is in contrast to the year-ago figure of 81.6 million.
Analysts forecast 'ARPU' to reach $42.09. The estimate is in contrast to the year-ago figure of $40.65.
Analysts predict that the 'Streaming Hours' will reach 36.18 billion. Compared to the present estimate, the company reported 30.8 billion in the same quarter last year.
Analysts expect 'Gross Profit- Platform' to come in at $460.57 million. Compared to the present estimate, the company reported $394.40 million in the same quarter last year.
View all Key Company Metrics for Roku here>>>
Shares of Roku have demonstrated returns of -9.4% over the past month compared to the Zacks S&P 500 composite's -4.3% change. With a Zacks Rank #3 (Hold), ROKU is expected to mirror the overall market performance in the near future. 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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