Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results

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

Roku Stock Performance

Shares of Roku stock traded down $6.46 during midday trading on Friday, reaching $56.35. 18,014,589 shares of the company’s stock traded hands, compared to its average volume of 5,809,055. The company has a market cap of $8.09 billion, a price-to-earnings ratio of -11.26 and a beta of 1.66. The company’s 50 day simple moving average is $63.11 and its 200 day simple moving average is $78.59. Roku has a 52 week low of $51.62 and a 52 week high of $108.84.

Insider Activity

In other news, Director Jeffrey M. Blackburn bought 8,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 13th. The shares were purchased at an average price of $63.96 per share, for a total transaction of $511,680.00. Following the acquisition, the director now directly owns 8,000 shares of the company’s stock, valued at approximately $511,680. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. In related news, Director Jeffrey M. Blackburn purchased 8,000 shares of the firm’s stock in a transaction on Wednesday, March 13th. The shares were bought at an average cost of $63.96 per share, for a total transaction of $511,680.00. Following the transaction, the director now directly owns 8,000 shares of the company’s stock, valued at approximately $511,680. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’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 completion of the sale, the chief executive officer now owns 141,221 shares in the company, valued at $13,930,039.44. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 54,545 shares of company stock worth $4,364,035. 13.63% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several research analysts have weighed in on ROKU shares. Stephens reiterated an “overweight” rating and issued a $105.00 price target on shares of Roku in a report on Friday, February 16th. Morgan Stanley dropped their price objective on Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a report on Friday, April 5th. Wedbush dropped their price objective on Roku from $80.00 to $75.00 and set an “outperform” rating for the company in a report on Friday. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Friday. Finally, Oppenheimer cut shares of Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Five research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the stock 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.