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For first-quarter 2021, Roku expects total net revenues of $720 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at a loss of 15 cents per share in the past 30 days. The figure suggests a 127.78% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $718.67 million, indicating 25.16% 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 426.19%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s first-quarter performance is expected to have benefited 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, released in January 2022, based on hours streamed, Roku was the #1 TV streaming platform in Mexico.
In partnership with Lionsgate Television, Roku announced its highly-anticipated scripted drama series, Swimming Sharks, based on the dark side of the Hollywood studio system, would make its debut on The Roku Channel in April 2022.
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 first-quarter 2022.
The Zacks Consensus Estimate for Platform revenues is pegged at $621 million, indicating growth of 33% from the figure reported in the year-ago quarter.
In fourth-quarter 2021, Roku’s active accounts rose 17% year over year to 60.1 million, driven by the popularity of Roku streaming players and Roku TV models. ARPU increased 43% to $41.03 (on a trailing 12-month basis).
The Zacks Consensus Estimate for first-quarter active accounts and ARPU is pegged at $61 million and $50, respectively, indicating an increase of 13% and 55.5% from the year-ago quarter’s reported figures.
In the last reported quarter, Roku users streamed streaming 19.5 billion hours, up 15% year over year.
In the to-be-reported quarter as well, streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.46 billion, suggesting an increase of 11.8% 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.
Key Q1 Developments
On Feb 1, Roku announced the launch of Nielsen’s Digital Ad Ratings (DAR) audience guarantees on OneView.
The integration of Nielsen’s DAR makes OneView the first ad-buying platform to enable Nielsen guarantees across TV streaming.
On Feb 2, Roku announced the expansion of the company’s advertising business to Mexico. The expansion will allow brands and content providers to reach even more consumers through ad-supported content on The Roku Channel — the #1 TV streaming platform in Mexico. As part of the launch, Roku partnered with Entravision, a leading global digital marketing and media company, which has local operations in Mexico, to help brands effectively reach consumers by advertising on the Roku streaming platform.
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 -26.31% and carries a Zacks Rank #3. 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.
Golden Entertainment (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 5.
Image: Bigstock
ROKU Gears Up to Report Q1 Earnings: What's in the Cards?
Roku (ROKU - Free Report) is set to report first-quarter 2022 results on Apr 28.
For first-quarter 2021, Roku expects total net revenues of $720 million.
For the quarter, the Zacks Consensus Estimate for earnings has been steady at a loss of 15 cents per share in the past 30 days. The figure suggests a 127.78% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $718.67 million, indicating 25.16% 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 426.19%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s first-quarter performance is expected to have benefited 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, released in January 2022, based on hours streamed, Roku was the #1 TV streaming platform in Mexico.
In partnership with Lionsgate Television, Roku announced its highly-anticipated scripted drama series, Swimming Sharks, based on the dark side of the Hollywood studio system, would make its debut on The Roku Channel in April 2022.
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 first-quarter 2022.
The Zacks Consensus Estimate for Platform revenues is pegged at $621 million, indicating growth of 33% from the figure reported in the year-ago quarter.
Roku, Inc. Price and EPS Surprise
Roku, Inc. price-eps-surprise | Roku, Inc. Quote
In fourth-quarter 2021, Roku’s active accounts rose 17% year over year to 60.1 million, driven by the popularity of Roku streaming players and Roku TV models. ARPU increased 43% to $41.03 (on a trailing 12-month basis).
The Zacks Consensus Estimate for first-quarter active accounts and ARPU is pegged at $61 million and $50, respectively, indicating an increase of 13% and 55.5% from the year-ago quarter’s reported figures.
In the last reported quarter, Roku users streamed streaming 19.5 billion hours, up 15% year over year.
In the to-be-reported quarter as well, streaming-hour growth is expected to have boosted TV streaming advertising on Roku’s platform. The consensus mark for streaming hours is pegged at 20.46 billion, suggesting an increase of 11.8% 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.
Key Q1 Developments
On Feb 1, Roku announced the launch of Nielsen’s Digital Ad Ratings (DAR) audience guarantees on OneView.
The integration of Nielsen’s DAR makes OneView the first ad-buying platform to enable Nielsen guarantees across TV streaming.
On Feb 2, Roku announced the expansion of the company’s advertising business to Mexico. The expansion will allow brands and content providers to reach even more consumers through ad-supported content on The Roku Channel — the #1 TV streaming platform in Mexico. As part of the launch, Roku partnered with Entravision, a leading global digital marketing and media company, which has local operations in Mexico, to help brands effectively reach consumers by advertising on the Roku streaming platform.
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 -26.31% and carries a Zacks Rank #3. 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.
SeaWorld Entertainment has an Earnings ESP of +38.64% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
Golden Entertainment (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 5.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.