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ROKU Gears Up to Report Q4 Earnings: What's in the Cards?
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Roku (ROKU - Free Report) is set to report fourth-quarter 2022 results on Feb 15.
For fourth-quarter 2022, Roku expects total net revenues to be $800 million. The consensus mark for revenues is pegged at $803.17 million, indicating 7.18% decline from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss is constant at $1.74 per share in the past 30 days. The figure suggests a 1123.5% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, the average earnings surprise being 50.55%.
Let’s see how things have shaped up for this announcement.
Roku’s fourth-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
In the to-be-reported quarter, Roku announced an expanded partnership that will feature AMC Networks’ high-quality content and targeted streaming services across The Roku Channel’s broad and growing ecosystem.
On Nov 15, Roku announced a broad expansion of its linear channel lineup, including news, sports, kids and family, lifestyle, Spanish-language entertainment and more from The Roku Channel’s Live TV Guide. Moreover, the launch of two all-new Roku Original unscripted series, Morimoto’s Sushi Master and The Cupcake Guys are also expected to have aided growth in active users in the to-be-reported quarter.
On Jan 5, Roku announced that the number of global active accounts now exceeds 70 million, which helps it retain the position of #1 TV streaming platform in the United States, Canada and Mexico based on hours streamed.
In third-quarter 2022, the company added 2.3 million incremental active accounts to reach 65.4 million. This growth was driven primarily by TV sales in both the U.S. and international markets, along with improved active account retention.
The Zacks Consensus Estimate for fourth-quarter active accounts and ARPU is pegged at $68 million and $42.65, respectively, indicating an increase of 13.3% and 3.9% from the year-ago quarter’s reported figures.
In third-quarter 2022, Roku users streamed 21.9 billion hours, up 1.1 billion hours from the second quarter. The consensus mark for streaming hours is pegged at 20.52 billion, suggesting an increase of 15% from the year-ago quarter’s reported figure.
However, Roku has been facing challenges from the macroeconomic environment, such as inflation and recessionary fear. The supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases. Both consumers and advertisers have significantly curtailed spending and the company expects this threat to curb its earnings for the quarter.
What Our Model Indicates
According to 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.
Roku has an Earnings ESP of +1.97% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Per our model, Vipshop Holdings (VIPS - Free Report) , Cisco Systems (CSCO - Free Report) and Applied Materials (AMAT - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Vipshop sports a Zacks Rank #1 and has an Earnings ESP of +1.01%. The company is expected to report fourth-quarter 2022 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 20.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIPS’ fourth-quarter earnings stands at 50 cents per share, implying a year-over-year increase of 22%. It is estimated to report revenues of $4.42 billion, which suggests a decline of 15.6% from the year-ago quarter.
Cisco carries a Zacks Rank #3 and has an Earnings ESP of +1.66%. The company is slated to report second-quarter fiscal 2023 results on Feb 15. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.1%.
The Zacks Consensus Estimate for CSCO’s fiscal second-quarter earnings is pegged at 86 per share, indicating a year-over-year increase of 2.4%. The consensus mark for revenues stands at $13.43 billion, suggesting a year-over-year increase of 5.6%.
Applied Materials is slated to report first-quarter fiscal 2023 results on Feb 16. The company has a Zacks Rank #3 and an Earnings ESP of +0.42% at present. Applied Materials’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 6.8%.
The Zacks Consensus Estimate for AMAT’s first-quarter earnings is pegged at $1.93 per share, suggesting an increase of 2.1% from the year-ago quarter’s earnings of $1.89. Applied Materials’ quarterly revenues are estimated to increase 6.6% year over year to $6.69 billion.
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ROKU Gears Up to Report Q4 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report fourth-quarter 2022 results on Feb 15.
For fourth-quarter 2022, Roku expects total net revenues to be $800 million. The consensus mark for revenues is pegged at $803.17 million, indicating 7.18% decline from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss is constant at $1.74 per share in the past 30 days. The figure suggests a 1123.5% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing twice, the average earnings surprise being 50.55%.
Let’s see how things have shaped up for this announcement.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
Factors to Consider
Roku’s fourth-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
In the to-be-reported quarter, Roku announced an expanded partnership that will feature AMC Networks’ high-quality content and targeted streaming services across The Roku Channel’s broad and growing ecosystem.
On Nov 15, Roku announced a broad expansion of its linear channel lineup, including news, sports, kids and family, lifestyle, Spanish-language entertainment and more from The Roku Channel’s Live TV Guide. Moreover, the launch of two all-new Roku Original unscripted series, Morimoto’s Sushi Master and The Cupcake Guys are also expected to have aided growth in active users in the to-be-reported quarter.
On Jan 5, Roku announced that the number of global active accounts now exceeds 70 million, which helps it retain the position of #1 TV streaming platform in the United States, Canada and Mexico based on hours streamed.
In third-quarter 2022, the company added 2.3 million incremental active accounts to reach 65.4 million. This growth was driven primarily by TV sales in both the U.S. and international markets, along with improved active account retention.
The Zacks Consensus Estimate for fourth-quarter active accounts and ARPU is pegged at $68 million and $42.65, respectively, indicating an increase of 13.3% and 3.9% from the year-ago quarter’s reported figures.
In third-quarter 2022, Roku users streamed 21.9 billion hours, up 1.1 billion hours from the second quarter. The consensus mark for streaming hours is pegged at 20.52 billion, suggesting an increase of 15% from the year-ago quarter’s reported figure.
However, Roku has been facing challenges from the macroeconomic environment, such as inflation and recessionary fear. The supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases. Both consumers and advertisers have significantly curtailed spending and the company expects this threat to curb its earnings for the quarter.
What Our Model Indicates
According to 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.
Roku has an Earnings ESP of +1.97% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Per our model, Vipshop Holdings (VIPS - Free Report) , Cisco Systems (CSCO - Free Report) and Applied Materials (AMAT - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Vipshop sports a Zacks Rank #1 and has an Earnings ESP of +1.01%. The company is expected to report fourth-quarter 2022 results on Feb 22. Its earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 20.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIPS’ fourth-quarter earnings stands at 50 cents per share, implying a year-over-year increase of 22%. It is estimated to report revenues of $4.42 billion, which suggests a decline of 15.6% from the year-ago quarter.
Cisco carries a Zacks Rank #3 and has an Earnings ESP of +1.66%. The company is slated to report second-quarter fiscal 2023 results on Feb 15. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.1%.
The Zacks Consensus Estimate for CSCO’s fiscal second-quarter earnings is pegged at 86 per share, indicating a year-over-year increase of 2.4%. The consensus mark for revenues stands at $13.43 billion, suggesting a year-over-year increase of 5.6%.
Applied Materials is slated to report first-quarter fiscal 2023 results on Feb 16. The company has a Zacks Rank #3 and an Earnings ESP of +0.42% at present. Applied Materials’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 6.8%.
The Zacks Consensus Estimate for AMAT’s first-quarter earnings is pegged at $1.93 per share, suggesting an increase of 2.1% from the year-ago quarter’s earnings of $1.89. Applied Materials’ quarterly revenues are estimated to increase 6.6% year over year to $6.69 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.