Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results this Thursday afternoon. Here’s what to expect.
Roku beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $1.02 billion, up 15.8% year on year. It was a slower quarter for the company, with a slight miss of analysts’ number of total hours streamed estimates and a significant miss of analysts’ EBITDA estimates. It reported 35.8 billion monthly active users, up 16.2% year on year.
Is Roku a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Roku’s revenue to grow 10.5% year on year to $1.07 billion, slowing from the 14.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roku has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.3% on average.
Looking at Roku’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 3.7%, and Netflix reported revenues up 15.9%, in line with consensus estimates. Coursera traded up 36.2% following the results while Netflix was down 5.2%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.1% on average over the last month. Roku is up 3.1% during the same time and is heading into earnings with an average analyst price target of $92.73 (compared to the current share price of $90.59).
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