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What's in the Offing for Robinhood's (HOOD) Q2 Earnings?

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Robinhood Markets, Inc. (HOOD - Free Report) is slated to report second-quarter 2022 results on Aug 3, after market close. Its earnings and revenues in the quarter are expected to have declined on a year-over-year basis.

In the last reported quarter, Robinhood recorded earnings per share of 21 cents. The Zacks Consensus Estimate was pegged at a loss of 31 cents. Results reflected a decline in total net revenues and higher operating expenses.

The Zacks Consensus Estimate for HOOD’s second-quarter earnings is pegged at a loss of 31 cents per share, which has been unchanged over the past seven days. The estimate indicates a substantial decline from the year-ago quarter’s reported number.

The consensus estimate for total sales is pegged at $351.7 million, suggesting a fall of 37.8% from the prior-year quarter’s reported figure.

Management Expectations for Q2

Overall costs are anticipated to remain elevated as the company invests in key areas to enhance platform capabilities, drive product innovation, improve customer support, and build upon regulatory and compliance functions.

The company anticipates recording a restructuring benefit of $7-$19 million, comprising $17-$23 million of cash restructuring and related charges, offset by $30-$36 million from the reversals of previously recognized share-based compensation.

Earnings Whispers

According to our quantitative model, the chances of Robinhood beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better, which is required to be confident of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Robinhood has an Earnings ESP of -40.52%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

A couple of stocks from the finance space worth a look at are Noah Holdings Limited (NOAH - Free Report) and Capital Southwest Corporation (CSWC - Free Report) .

The Zacks Consensus Estimate for NOAH’s current-year earnings has been revised upward by 3.8% over the past 60 days. The stock has lost 5% in the past three months. NOAH currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Capital Southwest’s earnings estimates for the current fiscal year have been revised marginally upward over the past 60 days. The stock has lost 11.4% over the past three months. CSWC currently carries a Zacks Rank #2 (Buy).

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Noah Holdings Ltd. (NOAH) - free report >>

Capital Southwest Corporation (CSWC) - free report >>

Robinhood Markets, Inc. (HOOD) - free report >>

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