Roku (NASDAQ:ROKU) Releases Quarterly Earnings Results, Beats Estimates By $0.65 EPS

Roku (NASDAQ:ROKU) issued its quarterly earnings results on Monday. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $0.55 by $0.65, FiscalAI reports. Roku had a return on equity of 19.19% and a net margin of 9.34%. The firm had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the prior year, the firm posted $0.16 earnings per share. The business’s quarterly revenue was up 24.1% compared to the same quarter last year.

Roku Stock Performance

NASDAQ:ROKU opened at $160.52 on Friday. The company has a fifty day moving average of $155.33 and a two-hundred day moving average of $128.92. Roku has a fifty-two week low of $78.53 and a fifty-two week high of $163.57. The stock has a market capitalization of $23.82 billion, a PE ratio of 45.34 and a beta of 2.12.

Analyst Ratings Changes

ROKU has been the subject of several research analyst reports. JPMorgan Chase & Co. started coverage on Roku in a research report on Monday, August 24th. They set a “neutral” rating and a $160.00 target price for the company. Seaport Research Partners cut shares of Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. Wells Fargo & Company lowered Roku from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $167.00 to $165.00 in a research note on Friday, August 14th. Needham & Company LLC restated a “buy” rating on shares of Roku in a report on Tuesday. Finally, Fox Advisors set a $157.00 target price on shares of Roku in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and eighteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $156.17.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox completed its reported $22 billion acquisition of Roku, combining Roku’s streaming platform with Fox’s media and advertising business. Fox expects the transaction to create more opportunities to reach audiences and serve advertising partners, while also expanding the reach of its sports and news programming. Fox completes its $22B acquisition of Roku
• Neutral Sentiment: The acquisition’s completion means Roku will no longer trade on Nasdaq as of Friday. Investors should view ROKU’s immediate trading implications in light of the completed transaction, rather than solely as a bet on Roku’s future as an independent company. Fox Corp. Closes $22B Acquisition Of Roku
• Neutral Sentiment: Roku head Charlie Collier and Tubi CEO Anjali Sud are departing, with Paul Cheesbrough named CEO of Fox Digital Platforms. The leadership changes signal a reshaping of Fox’s combined digital operation, though the reports provide no details on the expected financial impact. Fox Digital Platforms leadership changes

Insiders Place Their Bets

In other news, insider Charles Collier sold 20,538 shares of the firm’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $156.99, for a total value of $3,224,260.62. Following the completion of the sale, the insider owned 22,700 shares in the company, valued at approximately $3,563,673. This trade represents a 47.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Handman sold 2,999 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $466,764.36. Following the completion of the sale, the senior vice president directly owned 8,997 shares in the company, valued at approximately $1,400,293.08. The trade was a 25.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 88,028 shares of company stock worth $13,645,922. 13.45% of the stock is currently owned by company insiders.

About Roku

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.