Back to top

Image: Bigstock

What's in the Offing for Robinhood (HOOD) in Q1 Earnings?

Read MoreHide Full Article

Robinhood Markets, Inc. (HOOD - Free Report) is slated to report first-quarter 2022 results on Apr 28, after market close.

In the last reported quarter, Robinhood incurred a wider-than-expected loss of 49 cents per share. Growth in revenues, primarily driven by a rise in transaction-based revenues and other revenues, was more than offset by a substantial rise in total operating expenses.

The Zacks Consensus Estimate for HOOD’s first-quarter earnings is pegged at a loss of 31 cents per share. The estimate has been unchanged over the past seven days.

The consensus estimate for total sales is pegged at $363 million.

Management Expectations for Q1

The company expects total net revenues to be less than $340 million, assuming incremental improvement in trading volumes versus what has been seen so far. This implies a year-over-year revenue decline of 35%. Notably, in the prior-year quarter, the company saw outsized revenue performance due to heightened trading activity, particularly relating to certain meme-stocks.

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

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 -3.08%.

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

Stocks to Consider

A couple of stocks from the same space worth a look are LPL Financial Holdings Inc. (LPLA - Free Report) and Tradeweb Markets Inc. (TW - Free Report) .

The Zacks Consensus Estimate for LPLA’s current-year earnings has been revised upward by 3.1% over the past 30 days. The stock has gained 224.2% in the past two years. LPLA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Tradeweb Markets’ earnings estimates for the current year have been revised upward by 3.2% over the past 30 days. The stock has gained 45.4% over the past two years. TW currently carries a Zacks Rank #2.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Tradeweb Markets Inc. (TW) - free report >>

LPL Financial Holdings Inc. (LPLA) - free report >>

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

Published in