We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Robinhood Markets, Inc. (HOOD) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Read MoreHide Full Article
For the quarter ended September 2023, Robinhood Markets, Inc. (HOOD - Free Report) reported revenue of $467 million, up 29.4% over the same period last year. EPS came in at -$0.09, compared to -$0.20 in the year-ago quarter.
The reported revenue represents a surprise of -2.74% over the Zacks Consensus Estimate of $480.16 million. With the consensus EPS estimate being -$0.10, the EPS surprise was +10.00%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Robinhood Markets, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Assets Under Custody - Total: $86.5 billion versus the three-analyst average estimate of $89.24 billion.
Net Cumulative Funded Accounts (NCFA): $23.30 million compared to the $23.25 million average estimate based on three analysts.
DARTs - Options: 600 thousand versus 657.08 thousand estimated by two analysts on average.
DARTs - Equities: 1,600 thousand compared to the 1,703.79 thousand average estimate based on two analysts.
Revenues- Net interest revenues: $251 million compared to the $258.01 million average estimate based on three analysts. The reported number represents a change of +96.1% year over year.
Revenues- Transaction-based - Equities: $27 million versus the three-analyst average estimate of $29.23 million. The reported number represents a year-over-year change of -12.9%.
Revenues- Transaction-based - Cryptocurrencies: $23 million versus the three-analyst average estimate of $27.61 million. The reported number represents a year-over-year change of -54.9%.
Revenues- Transaction-based - Other: $11 million versus the three-analyst average estimate of $10.43 million. The reported number represents a year-over-year change of +450%.
Revenues- Transaction-based revenues: $185 million versus $199.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.1% change.
Revenues- Other revenues: $31 million versus the three-analyst average estimate of $27.15 million. The reported number represents a year-over-year change of +24%.
Revenues- Net interest revenues - Margin interest: $67 million versus the three-analyst average estimate of $65.10 million. The reported number represents a year-over-year change of +39.6%.
Revenues- Transaction-based - Options: $124 million compared to the $132.05 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
Shares of Robinhood Markets, Inc. have returned -2.8% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Robinhood Markets, Inc. (HOOD) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Robinhood Markets, Inc. (HOOD - Free Report) reported revenue of $467 million, up 29.4% over the same period last year. EPS came in at -$0.09, compared to -$0.20 in the year-ago quarter.
The reported revenue represents a surprise of -2.74% over the Zacks Consensus Estimate of $480.16 million. With the consensus EPS estimate being -$0.10, the EPS surprise was +10.00%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Robinhood Markets, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Assets Under Custody - Total: $86.5 billion versus the three-analyst average estimate of $89.24 billion.
- Net Cumulative Funded Accounts (NCFA): $23.30 million compared to the $23.25 million average estimate based on three analysts.
- DARTs - Options: 600 thousand versus 657.08 thousand estimated by two analysts on average.
- DARTs - Equities: 1,600 thousand compared to the 1,703.79 thousand average estimate based on two analysts.
- Revenues- Net interest revenues: $251 million compared to the $258.01 million average estimate based on three analysts. The reported number represents a change of +96.1% year over year.
- Revenues- Transaction-based - Equities: $27 million versus the three-analyst average estimate of $29.23 million. The reported number represents a year-over-year change of -12.9%.
- Revenues- Transaction-based - Cryptocurrencies: $23 million versus the three-analyst average estimate of $27.61 million. The reported number represents a year-over-year change of -54.9%.
- Revenues- Transaction-based - Other: $11 million versus the three-analyst average estimate of $10.43 million. The reported number represents a year-over-year change of +450%.
- Revenues- Transaction-based revenues: $185 million versus $199.32 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -11.1% change.
- Revenues- Other revenues: $31 million versus the three-analyst average estimate of $27.15 million. The reported number represents a year-over-year change of +24%.
- Revenues- Net interest revenues - Margin interest: $67 million versus the three-analyst average estimate of $65.10 million. The reported number represents a year-over-year change of +39.6%.
- Revenues- Transaction-based - Options: $124 million compared to the $132.05 million average estimate based on three analysts. The reported number represents a change of 0% year over year.
View all Key Company Metrics for Robinhood Markets, Inc. here>>>Shares of Robinhood Markets, Inc. have returned -2.8% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.