Roku (NASDAQ:ROKU) Announces Quarterly Earnings Results

Roku (NASDAQ:ROKU) announced its quarterly earnings data on Thursday. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.64) by $0.29, Briefing.com reports. Roku had a negative return on equity of 23.73% and a negative net margin of 15.64%. The firm had revenue of $881.50 million for the quarter, compared to analysts’ expectations of $843.54 million. During the same quarter in the prior year, the firm posted ($1.38) earnings per share. Roku’s revenue for the quarter was up 19.0% compared to the same quarter last year. Roku updated its Q2 2024 guidance to EPS.

Roku Price Performance

Shares of ROKU stock opened at $56.35 on Friday. Roku has a 12-month low of $51.62 and a 12-month high of $108.84. The firm has a market capitalization of $8.09 billion, a price-to-earnings ratio of -14.12 and a beta of 1.66. The business has a 50 day simple moving average of $62.80 and a 200 day simple moving average of $78.52.

Insider Buying and Selling

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

Analysts Set New Price Targets

Several brokerages have issued reports on ROKU. Oppenheimer cut Roku from an “outperform” rating to a “market perform” rating in a research note on Friday, February 16th. Wells Fargo & Company upped their price objective on Roku from $45.00 to $52.00 and gave the company an “underweight” rating in a research note on Friday. Morgan Stanley cut their price objective on Roku from $65.00 to $60.00 and set an “underweight” rating on the stock in a research note on Friday, April 5th. Citigroup cut their price objective on Roku from $110.00 to $75.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 21st. Finally, Piper Sandler reiterated a “neutral” rating and set a $65.00 price target (down from $81.00) on shares of Roku in a research report on Friday. Four equities research analysts have rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, Roku presently has a consensus rating of “Hold” and an average target price of $86.05.

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.