Roku Inc

NASDAQ:ROKU   2:30PM EDT
31.53
-0.59 (-1.84%)

People also watch

Roku Earnings: What Will Move the Market

Roku Earnings: What Will Move the Market



Roku Earnings: What Will Move the Market


Date Published:

Disclaimer

The 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.


LEDE

Roku (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 Numbers

There 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
EPS$ 0.05


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.


What Happened

You are on the better, smarter, faster version of finance portals like Yahoo! Finance. Welcome -- as one example, all of this data we just covered is available for any company, at any time, on the CMLviz.com Analyst Tab, for free: Right Here

Bookmark the site -- this is -- Free. Forever. Period.


Risk Disclosure
The information contained on this site is 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. Consult the appropriate professional advisor for more complete and current information. Capital Market Laboratories ("The Company") does not engage in rendering any legal or professional services by placing these general informational materials on this website.

The Company specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if we have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.

The Company make no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.