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Roblox (RBLX) to Report Q2 Earnings: What's in the Cards?

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Roblox (RBLX - Free Report) is set to report second-quarter 2022 results on Aug 9.

The Zacks Consensus Estimate for revenues is pegged at $636.6 million, indicating a decline of 4.34% from the year-ago quarter’s levels.

The consensus estimate for the bottom line has remained unchanged in the past 30 days and is currently pegged at a loss of 23 cents per share.

Let’s see how things have shaped prior to this announcement.

Roblox Corporation Price and EPS Surprise

Roblox Corporation Price and EPS Surprise

Roblox Corporation price-eps-surprise | Roblox Corporation Quote

Factors to Note

Roblox’s second-quarter performance is expected to have benefited from consumer onboarding, developer growth and a year-over-year rise in user engagement.

In first-quarter 2022, average daily active users (DAUs) were 54.1 million, up 28% year over year, driven by the overall increase in engagement on the Roblox platform.

Roblox reported 28% year-over-year growth in its DAUs, reaching 54.1 million as of Mar 31, 2022.

In the first quarter of 2022, hours engaged were 11.8 billion, up 22% year over year. The to-be-reported quarter’s performance is expected to have benefited from strong engagement hours growth.

The company expects robust growth in the age demographics between 13-to-16-year-olds and 17-to-24-year-olds in second-quarter 2022.

Roblox’s increasing penetration in user base between 9 to 12 years and even U9 holds promise. This is expected to have aided user growth in the to-be-reported quarter.

Roblox’s developer community’s focus on providing good content, featuring better visuals and effects, and continued market penetration is expected to drive second-quarter results.

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.

Roblox 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:

Blink Charging (BLNK - Free Report) has a Zacks Rank #2 and an Earnings ESP of +4.23%. You can see the complete list of today’s Zacks #1 Rank stocks here.

BLNK’s shares have fallen 16.8% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 15.5%.

Intuit (INTU - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank #2.

Intuit’s shares have fallen 27.6% in the year-to-date period compared with the Zacks Computer - Software industry’s decline of 18.4%.

Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #2.

KEY’s shares have fallen19.9% in the year-to-date period compared with the Zacks Electronics - Measuring Instruments industry’s decline of 21.8%.

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