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

Roku (NASDAQ:ROKU) posted its quarterly earnings data on Monday. The company reported $1.20 EPS for the quarter, beating the consensus estimate of $0.55 by $0.65, FiscalAI reports. The business had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.41 billion. Roku had a return on equity of 18.65% and a net margin of 9.34%. Roku’s revenue for the quarter was up 24.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.16 earnings per share.

Roku Price Performance

NASDAQ ROKU opened at $160.37 on Friday. Roku has a 1 year low of $78.53 and a 1 year high of $163.57. The stock has a market capitalization of $23.80 billion, a PE ratio of 47.46 and a beta of 2.12. The company’s 50 day simple moving average is $155.25 and its two-hundred day simple moving average is $128.63.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s latest quarter came in well ahead of expectations: revenue rose 24.1% year over year to $1.50 billion, while EPS was $1.20 versus the $0.55 consensus. The earnings beat has helped support the stock’s recent rally. Roku shares rise after earnings beat
• Positive Sentiment: Recent articles highlight Roku’s fresh 52-week high and strong momentum. Zacks’ momentum-focused coverage and technical commentary about shares moving above a key moving average may attract trend-following investors. Roku momentum coverage
• Neutral Sentiment: Director Neil Hunt sold 2,000 shares through a pre-arranged Rule 10b5-1 plan. The planned sale is less informative about his near-term outlook than an unplanned transaction. SEC filing for director share sale
• Negative Sentiment: Analyst sentiment suggests limited upside after the rally: the reported consensus rating is “Hold,” and the average price target of $156.17 is below the recent trading level. This valuation gap could encourage profit-taking. Roku analyst price target
• Negative Sentiment: Roku’s decision to retire a popular aquatic-life screensaver drew complaints from some users. The customer reaction appears modest compared with earnings and valuation factors, but could weigh slightly on sentiment. Coverage of screensaver change

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 7,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $156.81, for a total value of $1,097,670.00. Following the sale, the chief financial officer owned 74,811 shares in the company, valued at approximately $11,731,112.91. This trade represents a 8.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 4,824 shares of Roku stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $750,807.36. Following the sale, the insider directly owned 40,168 shares of the company’s stock, valued at $6,251,747.52. This represents a 10.72% decrease in their position. 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. Over the last 90 days, insiders sold 88,028 shares of company stock worth $13,645,922. 13.45% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on ROKU shares. Needham & Company LLC reaffirmed a “buy” rating on shares of Roku in a report on Tuesday. Wells Fargo & Company cut shares of Roku from an “overweight” rating to an “equal weight” rating and dropped their price target for the company from $167.00 to $165.00 in a research note on Friday, August 14th. JPMorgan Chase & Co. initiated coverage on shares of Roku in a report on Monday, August 24th. They issued a “neutral” rating and a $160.00 price objective for the company. Rosenblatt Securities downgraded shares of Roku from a “buy” rating to a “hold” rating and set a $160.00 price objective for the company. in a report on Tuesday. Finally, Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and eighteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $156.17.

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.