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Roku Partners With Sharp to Launch Sharp Roku TV Models

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Roku, Inc. (ROKU - Free Report) announced that Roku Operating System (OS) was the #1 smart TV OS sold in the United States, for the second year in a row.

The news has been released by the American Market Research company, The NPD Group’s Retail Tracking Service, and is based on the data available from Jan 3, 2021, to Dec 4, 2021.

In addition, Roku announced a partnership with the Japanese multinational firm Sharp to bring Sharp Roku TV models to customers in the United States.

Sharp will leverage Roku’s TV hardware design and Roku OS to launch a series of 4K and HD TV models in 2022.

The Sharp Roku TV models will have integrated Roku OS and offer customizable home screens. It will also be compatible with three major voice ecosystems and consumers will have access to over thousand channels, including 200 live TV channels.

In line with the company’s expansion goal in early 2022, the Roku TV licensing program in Mexico will be expanded to include a total of 10 brands with the addition of HKPRO and Aiwa.

Roku, Inc. Price and Consensus

 

Roku, Inc. Price and Consensus

Roku, Inc. price-consensus-chart | Roku, Inc. Quote

 

Global TV Footprint Expansion Aids Prospects

Roku has been focused on expanding it Roku TV footprint globally.

The company continues to partner with global brands to extend its TV licensing program, which is anticipated to drive Roku TV momentum growth

The Roku TV licensing program provides OEMs and TV brands and convenient and cost-effective way to produce good quality smart TVs at competitive price points.

In the past few years, the sale of Roku TV models by the company’s TV brand partners has materially contributed to its active account growth, streaming hours and platform monetization efforts.

Previously Roku had partnered with 15 global brands to launch Roku TV models in Canada, Mexico and the United States in 2020. The Roku TV brands included Walmart’s Atvio, Hisense, Hitachi, Element, InFocus, JVC, Philips, Polaroid, Magnavox, onn., RCA, Sanyo, TCL and Westinghouse.

In 2021, Roku partnered with TCL Electronics to launch Roku TV models in the U.K.
In the same year, Roku entered into a strategic partnership with SEMP TCL, the Brazil-based joint venture electronics company.

Per the agreement, TCL extended its global partnership with Roku to launch Roku TV models in Brazil, and introduced a new lineup of SEMP Roku TV models in the country.
Building on this momentum, Roku plans to expand its TV footprint in Latin America, Chile and Peru with Roku TV models in the next few years.

In 2020, Roku generated $510.6 million player revenues with a 31.6% year-over-year increase in the volume of players sold. Nearly one in three smart TVs sold in the United States were Roku TVs.

In third-quarter 2021, the player segment witnessed a 26% year-over-year decline in player revenues. This was majorly due to global supply chain disruptions that impacted the U.S. TV market. As a result, some of the Roku TV OEM partners witnessed inventory channels, which affected TV sales in the reported quarter.

Zacks Rank and Stocks to Consider

Currently, Roku holds a Zacks Rank #3 (Hold).

Roku’s shares have declined 30.5% against the Zacks Broadcast Radio and Television industry’s return of 7.4% and the Consumer Discretionary sector’s decline of 10.1% year to date.

The Zacks Consensus Estimate for Roku’s fourth-quarter fiscal 2021 earnings is pegged at 1 cent per share, which has been steady for the last 60 days. For fiscal 2021, earnings estimates have moved north by 1.3% to $1.55 per share in the past 60 days.

Some of the better-ranked stocks in the Zacks Consumer Discretionary sector are BJ’s Wholesale Club (BJ - Free Report) and Caleres (CAL - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Electronic Arts (EA - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Wholesale Club, an American membership-only warehouse club chain, has a trailing four-quarter earnings surprise of 17.72% on average.

Caleres, engaged in manufacturing footwear, has a trailing four-quarter earnings surprise of 796.16%, on average.

Electronic Arts, an American video game company, has a trailing four-quarter earnings surprise of 11.72% on average.

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