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

Roku (NASDAQ:ROKU) issued its earnings results on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29, Briefing.com reports. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter last year, the company earned ($2.33) EPS. Roku updated its Q4 2024 guidance to EPS.

Roku Trading Down 21.5 %

Shares of NASDAQ ROKU traded down $16.66 during trading hours on Thursday, hitting $60.85. 11,359,793 shares of the company traded hands, compared to its average volume of 4,373,778. The stock has a market capitalization of $8.77 billion, a price-to-earnings ratio of -15.37 and a beta of 2.08. The company’s 50 day moving average price is $73.24 and its 200 day moving average price is $63.66. Roku has a 12 month low of $48.33 and a 12 month high of $108.84.

Insider Activity at Roku

In related news, insider Charles Collier sold 15,454 shares of the business’s stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now owns 200 shares in the company, valued at $15,000. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Roku news, insider Charles Collier sold 15,454 shares of the company’s stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total value of $1,159,050.00. Following the completion of the sale, the insider now directly owns 200 shares in the company, valued at approximately $15,000. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the completion of the sale, the chief financial officer now owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 69,566 shares of company stock worth $5,254,000 in the last quarter. 13.98% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages recently issued reports on ROKU. Macquarie reissued an “outperform” rating and set a $90.00 target price on shares of Roku in a research note on Thursday. Wedbush lifted their target price on Roku from $75.00 to $85.00 and gave the company an “outperform” rating in a research note on Friday, October 25th. Morgan Stanley lifted their target price on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday. Rosenblatt Securities lifted their target price on Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research note on Thursday. Finally, Guggenheim raised Roku from a “neutral” rating to a “buy” rating and set a $75.00 target price on the stock in a research note on Friday, August 23rd. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and twelve have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $83.80.

Roku Company Profile

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.