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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 2021 results on Feb 17.
For fourth-quarter 2021, Roku expects total net revenues between $885 million and $900 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 1 cent per share in the past 30 days. The figure suggests a 97.96% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $902.27 million, which indicates 38.83% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 650.36%.
Let’s see how things have shaped up for this announcement.
Roku’s fourth-quarter performance is expected to benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers.
According to a recent study by the Hypothesis Group, based on hours streamed, Roku was the #1 TV streaming platform in Mexico.
Roku premiered its new comedy The Now from Academy Award winners Peter Farelly and Bopbby Farelly in the reported quarter.
In partnership with Lionsgate Television, Roku announced its first original movie, Zoey’s Extraordinary Christmas. The movie was the #1 viewed program globally on The Roku Channel during its opening weekend and was also nominated for a Critics Choice Awards for “Best Movie Made for Television.”
Availability of third-party streaming channels on the Roku platform, including Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal as well as Peacock, Amazon Prime Video, AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in fourth-quarter 2021.
The Zacks Consensus Estimate for Platform revenues is pegged at $736 million, indicating growth of 56.3% from the figure reported in the year-ago quarter.
Roku’s active accounts jumped 23% year over year to 56.4 million in third-quarter 2021. Moreover, ARPU increased 49% to $40.10 (on a trailing 12-month basis).
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $60 million and $41.76, respectively, indicating an increase of 17.65% and 45.2% from the year-ago reported figures.
Streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.25 billion, implying an increase of 19.1% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Increasing advertiser demand for new products offered by the company, such as incremental reach guarantees and Roku’s OneView ad platform, is expected to have been key catalysts.
The company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
Q4 Developments
On Dec 7, Roku announced that it would establish and invest in an office in Amsterdam to support international growth. Roku plans to expand its existing presence in The Netherlands.
On Dec 29, Roku announced the global expansion of its Roku TV Ready Certification Program. The expansion of the certification program makes it easier for third-party audio partners to join the platform seamlessly. New partners of the company added through the tenure of 2021 include JVC, Element, Pheanoo and Philips. Polk Audio and Westinghouse are scheduled to join the platform in early 2022. The program has also been expanded internationally with several audio partners launching in Canada, Mexico and the U.K.
What Our Model Says
Per 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. But that’s not the case here.
Roku has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
CROX is up 20.2% in the past year against the Zacks Textile – Apparel industry’s decline of 9.8% and the Consumer Discretionary sector’s fall of 22.4% in the past year.
Cedar Fair (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1. The company is set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 43.5% in the past year against the Zacks Leisure and Recreation Services industry’s return of 0.5% and the Consumer Discretionary sector’s fall of 22.4%.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of 9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 38.5% in the past year against the Zacks Textile – Apparel industry’s decline of 9.8% and the Consumer Discretionary sector’s fall of 22.4%.
Image: Bigstock
ROKU Gears Up to Report Q4 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report fourth-quarter 2021 results on Feb 17.
For fourth-quarter 2021, Roku expects total net revenues between $885 million and $900 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at 1 cent per share in the past 30 days. The figure suggests a 97.96% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $902.27 million, which indicates 38.83% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average earnings surprise being 650.36%.
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 benefit from steady active accounts growth at its free, ad-supported platform, The Roku Channel.
The ability to access free and premium content on the same platform has been a huge attraction for subscribers.
According to a recent study by the Hypothesis Group, based on hours streamed, Roku was the #1 TV streaming platform in Mexico.
Roku premiered its new comedy The Now from Academy Award winners Peter Farelly and Bopbby Farelly in the reported quarter.
In partnership with Lionsgate Television, Roku announced its first original movie, Zoey’s Extraordinary Christmas. The movie was the #1 viewed program globally on The Roku Channel during its opening weekend and was also nominated for a Critics Choice Awards for “Best Movie Made for Television.”
Availability of third-party streaming channels on the Roku platform, including Discovery+, Disney+, HBO Max, Paramount+, NBCUniversal as well as Peacock, Amazon Prime Video, AppleTV+, Hulu and Netflix, besides continued investments in The Roku Channel, is expected to have contributed to engagement growth in fourth-quarter 2021.
The Zacks Consensus Estimate for Platform revenues is pegged at $736 million, indicating growth of 56.3% from the figure reported in the year-ago quarter.
Roku’s active accounts jumped 23% year over year to 56.4 million in third-quarter 2021. Moreover, ARPU increased 49% to $40.10 (on a trailing 12-month basis).
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $60 million and $41.76, respectively, indicating an increase of 17.65% and 45.2% from the year-ago reported figures.
Streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.25 billion, implying an increase of 19.1% from the year-ago quarter’s reported figure.
The growing popularity of The Roku Channel is expected to have attracted advertisers in the to-be-reported quarter. Apart from an improved ad-spending environment, Roku is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Increasing advertiser demand for new products offered by the company, such as incremental reach guarantees and Roku’s OneView ad platform, is expected to have been key catalysts.
The company’s expanding international presence in more than 20 countries like the U.K., Mexico, Brazil, the United States and Canada is expected to have been a key catalyst.
Q4 Developments
On Dec 7, Roku announced that it would establish and invest in an office in Amsterdam to support international growth. Roku plans to expand its existing presence in The Netherlands.
On Dec 29, Roku announced the global expansion of its Roku TV Ready Certification Program. The expansion of the certification program makes it easier for third-party audio partners to join the platform seamlessly. New partners of the company added through the tenure of 2021 include JVC, Element, Pheanoo and Philips. Polk Audio and Westinghouse are scheduled to join the platform in early 2022. The program has also been expanded internationally with several audio partners launching in Canada, Mexico and the U.K.
What Our Model Says
Per 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. But that’s not the case here.
Roku has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Crocs (CROX - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #1. The company is set to announce fourth-quarter fiscal 2021 results on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
CROX is up 20.2% in the past year against the Zacks Textile – Apparel industry’s decline of 9.8% and the Consumer Discretionary sector’s fall of 22.4% in the past year.
Cedar Fair (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1. The company is set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 43.5% in the past year against the Zacks Leisure and Recreation Services industry’s return of 0.5% and the Consumer Discretionary sector’s fall of 22.4%.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of 9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 38.5% in the past year against the Zacks Textile – Apparel industry’s decline of 9.8% and the Consumer Discretionary sector’s fall of 22.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.