Roku (NASDAQ:ROKU) Posts Earnings Results, Beats Expectations By $0.29 EPS

Roku (NASDAQ:ROKU) announced its quarterly earnings data on Thursday. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.64) by $0.29, Briefing.com reports. The business had revenue of $881.50 million for the quarter, compared to analysts’ expectations of $843.54 million. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. The firm’s quarterly revenue was up 19.0% compared to the same quarter last year. During the same period last year, the firm posted ($1.38) earnings per share. Roku updated its Q2 2024 guidance to EPS.

Roku Stock Down 10.3 %

ROKU stock traded down $6.48 during midday trading on Friday, hitting $56.33. The company’s stock had a trading volume of 17,668,432 shares, compared to its average volume of 5,787,735. The stock has a market cap of $8.08 billion, a price-to-earnings ratio of -11.26 and a beta of 1.66. The stock’s 50-day moving average price is $63.11 and its 200 day moving average price is $78.59. Roku has a 1 year low of $51.62 and a 1 year high of $108.84.

Insider Buying and Selling

In other news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the transaction, the chief executive officer now owns 141,221 shares of the company’s stock, valued at approximately $13,930,039.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the completion of the transaction, the chief executive officer now directly owns 141,221 shares in the company, valued at approximately $13,930,039.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charles Collier sold 12,277 shares of Roku stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $65.06, for a total value of $798,741.62. Following the completion of the transaction, the insider now owns 4,292 shares of the company’s stock, valued at $279,237.52. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 54,545 shares of company stock valued at $4,364,035. 13.63% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on ROKU. Susquehanna raised their price objective on Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, February 16th. Citigroup lowered their price objective on Roku from $110.00 to $75.00 and set a “neutral” rating for the company in a research note on Wednesday, February 21st. Oppenheimer lowered shares of Roku from an “outperform” rating to a “market perform” rating in a report on Friday, February 16th. Piper Sandler reiterated a “neutral” rating and set a $65.00 price target (down previously from $81.00) on shares of Roku in a report on Friday. Finally, Morgan Stanley lowered their target price on Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research report on Friday, April 5th. Five equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Roku currently has a consensus rating of “Hold” and a consensus target price of $83.90.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.