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For third-quarter 2021, Roku expects total net revenues between $675 million and $685 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 6 cents per share over the past 30 days. The figure suggests a 33.3% decline from the year-ago reported figure.
The consensus mark for revenues, pegged at $683.6 million, indicates 51.4% growth from the year-ago reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 506.1%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s third-quarter results are expected to benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers. During the to-be-reported quarter, Roku added 17 new channels including CBC, El Rey, AccuWeather Now, FilmRise True Crime, Haunt TV, Real Madrid TV and IGN. With the addition of the new channels, The Roku Channel is now home to more than 200 free streaming channels.
On Aug 13, Roku Channel debuted four all-new Roku Originals series – Eye Candy, Squeaky Clean, season 2 of Thanks a Million, and What Happens in Hollywood, besides multi-Emmy nominated Mapleworth Murders.
Availability of third-party streaming channels on the Roku platform, including Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal, as well as Peacock, Amazon Prime Video, AppleTV+, Hulu, and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in the third quarter of 2021.
The Zacks Consensus Estimate for Platform revenues is pegged at $547 million, indicating growth of 71.4% from the figure reported in the year-ago quarter.
Roku’s active accounts jumped 28% year over year to 55.1 million in second-quarter 2021. Moreover, ARPU increased 46% to $36.46 (on a trailing 12-month basis).
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $57 million and $39.35, respectively, indicating an increase of 32.6% and 45.7% from the year-ago reported figures.
Streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours stands at 18.41 billion, implying an increase of 24.4% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Further, increasing advertiser demand for new products offered by the company, such as incremental reach guarantees and Roku’s OneView ad platform, are expected to have been key catalysts.
Moreover, the company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Roku has an Earnings ESP of -18.18% and carries a Zacks Rank #2, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Image: Bigstock
ROKU Gears Up to Report Q3 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report third-quarter 2021 results on Nov 3.
For third-quarter 2021, Roku expects total net revenues between $675 million and $685 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 6 cents per share over the past 30 days. The figure suggests a 33.3% decline from the year-ago reported figure.
The consensus mark for revenues, pegged at $683.6 million, indicates 51.4% growth from the year-ago reported figure.
Notably, the company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 506.1%.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s third-quarter results are expected to benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers. During the to-be-reported quarter, Roku added 17 new channels including CBC, El Rey, AccuWeather Now, FilmRise True Crime, Haunt TV, Real Madrid TV and IGN. With the addition of the new channels, The Roku Channel is now home to more than 200 free streaming channels.
On Aug 13, Roku Channel debuted four all-new Roku Originals series – Eye Candy, Squeaky Clean, season 2 of Thanks a Million, and What Happens in Hollywood, besides multi-Emmy nominated Mapleworth Murders.
Availability of third-party streaming channels on the Roku platform, including Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal, as well as Peacock, Amazon Prime Video, AppleTV+, Hulu, and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in the third quarter of 2021.
The Zacks Consensus Estimate for Platform revenues is pegged at $547 million, indicating growth of 71.4% from the figure reported in the year-ago quarter.
Roku’s active accounts jumped 28% year over year to 55.1 million in second-quarter 2021. Moreover, ARPU increased 46% to $36.46 (on a trailing 12-month basis).
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $57 million and $39.35, respectively, indicating an increase of 32.6% and 45.7% from the year-ago reported figures.
Streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours stands at 18.41 billion, implying an increase of 24.4% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Further, increasing advertiser demand for new products offered by the company, such as incremental reach guarantees and Roku’s OneView ad platform, are expected to have been key catalysts.
Moreover, the company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Roku has an Earnings ESP of -18.18% and carries a Zacks Rank #2, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
AMC Entertainment (AMC - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fox (FOXA - Free Report) has an Earnings ESP of +6.18% and a Zacks Rank #2.
Wesco International (WCC - Free Report) has an Earnings ESP of +7.87% and a Zacks Rank #2.