Roku Earnings: What Will Move the Market
Date Published: 10-22-2018
DisclaimerThe results here are provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation.
LEDERoku (NASDAQ:ROKU) has earnings due out 2018-11-07, after the market closes. While the results relative to analyst estimates as well as guidance will drive the stock, there's also a little detail in the estimates that we must address. Listen up, next quarter's guidance is expected to leave the company with its first ever positive EPS. Yes, Roku is expected to turn a profit next quarter on an adjusted EPS basis.
Along with the numbers presented below, note that Smart TV maker TCL, which licenses Roku's operating system, has now become the second largest Smart TV seller in North America, according to its own earnings release in Hong Kong. That means ROKU now has not only the best selling smart TV stick / box, but now powers the second best selling actual Smart TV (glass and metal).
Roku further powers the "glass and metal" Smart TVs made by Element, Hisense, Hitachi, Insignia, RCA, and Sharp.
Finally, this is the first quarter were we should hear results and guidance surrounding Roku's web based product -- something that Amazon immediately copied upon announcement. Roku launched the Roku Channel for the web in the United States and the channel app on select Samsung smart TVs.
Roku - By the NumbersThere is an expectation set by Wall Street -- and there are numbers at the top tier of that expectation as well. Guidance, at times, moves the market more than the actual quarter being reported -- so watch those numbers as well. Finally, with Roku, the number of current accounts will always be a watched metric, anything in the mid 24 million range would likely be considered a substantial beat.
Last quarter the company also raised its full-year revenue forecast to $710 million. A raise again would be a huge win.
Current Quarter Analyst Estimates
|Revenue||$ 170.44 Million|
|Adjusted EPS||$ -0.12|
What Constitutes a "Large Beat" for the Quarter* If ROKU reports a revenue number above $ 175.70 Million , that would be ahead of even the highest estimates. (Watch this number, closely.)
* If ROKU reports an EPS number above $ -0.06 , that would be ahead of even the highest estimates.
Next Quarter Analyst Estimates
|Revenue||$ 258.84 Million|
What Constitutes a "Large Beat" in Guidance* If ROKU guides revenue above $ 267.20 Million , that would be ahead of even the highest estimates. (Watch this number, closely, too.)
* If ROKU guides EPS above $ 0.11 , that would be ahead of even the highest estimates.
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