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Roblox (RBLX) to Report Q4 Earnings: What's in the Cards?

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Roblox (RBLX - Free Report) is set to report fourth-quarter 2021 results on Feb 15.

The Zacks Consensus Estimate for revenues is pegged at $763.11 million. The consensus mark for loss improved by 7.14% at 13 cents per share in the past 30 days.

Let’s see how things have shaped up prior to this announcement.

Roblox Corporation Price, Consensus and EPS Surprise

 

Roblox Corporation Price, Consensus and EPS Surprise

Roblox Corporation price-consensus-eps-surprise-chart | Roblox Corporation Quote

 

Factors to Consider

Roblox’s fourth-quarter performance is expected to have benefited from growth in the company’s community of users and developers. This is expected to have driven sales of Robux, the currency used in Roblox, thereby aiding the top line.

The company’s fastest-growing demographic is between 17-to 24-year-olds. The Roblox developer community has been focused on tackling this expanding market with a robust content portfolio, updates and more innovative experiences featuring visuals and effects.

The company is expected to have benefited from the strong cash flow generated from Robux sales. Users spend Robux on experiences and items for their avatars, while developers and creators earn Robux by building experiences and items for users.

As measured on Jan 1, 2022, the median user on Roblox visited 40 unique experiences over the course of 2021.

In third-quarter 2021, the average daily active users (DAU) reached 47.3 million, up 31% year over year. Average bookings per DAU (ABPDAU) were $13.49, reflecting a 1.75% decline year over year. The game was offline for three days between Oct 28 and Oct 31.

Roblox also reported a 43% year-over-year growth in daily active users during the first 27 days of October 2021.

Roblox reported 54% growth in its user base, reaching 50 million, as of November 2021, from 32.6 million. The to-be-reported quarter’s performance is expected to have benefited from robust growth in daily active users.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Roblox has an Earnings ESP of +19.23% and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some 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:

Crocs (CROX - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #1. The company is set to announce fourth-quarter fiscal 2021 results on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.

CROX is up 32.4% in the past year against the Zacks Textile – Apparel industry’s decline of 4.1% and the Consumer Discretionary sector’s fall of 20% in the past year.

Cedar Fair (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1. The company is set to announce fourth-quarter 2021 results on Feb 16.

FUN is up 39.6% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 3.9% and the Consumer Discretionary sector’s fall of 20%.

Gildan Activewear (GIL - Free Report) has an Earnings ESP of 9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.

GIL is up 46.7% in the past year against the Zacks Textile – Apparel industry’s decline of 4.1% and the Consumer Discretionary sector’s fall of 20%.

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