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ROKU Gears Up to Report Q3 Earnings: Whats in the Cards?
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Roku (ROKU - Free Report) is set to report third-quarter 2022 results on Nov 2.
For third-quarter 2022, Roku expects total net revenues to be $700 million. The consensus mark for revenues is pegged at $698.93 million, indicating 2.79% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss is constant at $1.37 per share in the past 30 days. The figure suggests a 385.42% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 216.61%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s third-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
In the to-be-reported quarter, Roku announced the launch of Roku TV in Germany, with Metz blue and TCL as the first partners, and also the launch of three new Roku TV brands in Mexico: Aiwa, Daewoo and Sansui.
The launch of The Rich Eisen Show on the Roku Channel and the debut of the second season of Roku Recommends are also expected to aid the quarterly results.
In second-quarter 2022, Roku added 1.8 million active accounts to 63.1 million, driven by the popularity of Roku streaming players and Roku TV models.
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $64 million and $45.63, respectively, indicating an increase of 14.3% and 13.8% from the year-ago quarter’s reported figures.
In second-quarter 2022, Roku users streamed 20.7 billion hours, up 16.4% year over year. The consensus mark for streaming hours is pegged at 20.52 billion, suggesting an increase of 14% from the year-ago quarter’s reported figure.
Two new products in the device lineup, the Roku Express player and Roku Wireless Bass were also launched in the quarter. The Roku Express comes ready to stream, with dual-band Wi-Fi, a simple remote, increased storage, HDMI Cable, and an extensive library of free, live and premium TV selections. The newly designed Roku Wireless Bass provides high-powered sound for a theater-like experience.
Along with this, some latest enhancements were made to Roku’s operating system. The company introduced an all-new content discovery experience, The Buzz, to the Roku Home Screen Menu as well as two significant updates to its What to Watch feature, Continue Watching and an expanded platform-wide Save List.
However, Roku has been facing challenges from the macroeconomic environment, such as inflation and recessionary fear. The supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases. Both consumers and advertisers have significantly curtailed spending, and the company expects this threat to curb its earnings for the quarter.
Key Developments
On Aug 3, Roku announced that Paramount+ (PARA - Free Report) launched as a Premium Subscription within The Roku Channel. This made Paramount+’s critically acclaimed originals, hit movies, a world-class library of popular series, 24/7 news and marquee sports accessible directly to consumers within The Roku Channel.
What Our Model Indicates
According to 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 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 a few companies worth considering, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. TME shares have lost 46.5% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.6%.
Image: Bigstock
ROKU Gears Up to Report Q3 Earnings: Whats in the Cards?
Roku (ROKU - Free Report) is set to report third-quarter 2022 results on Nov 2.
For third-quarter 2022, Roku expects total net revenues to be $700 million. The consensus mark for revenues is pegged at $698.93 million, indicating 2.79% growth from the year-ago quarter’s reported figure.
For the quarter to be reported, the Zacks Consensus Estimate for loss is constant at $1.37 per share in the past 30 days. The figure suggests a 385.42% decline from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 216.61%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Roku’s third-quarter performance is expected to have benefited from the growing popularity of The Roku Channel, expanding TV brands & retailer partner base and third-party streaming channels.
In the to-be-reported quarter, Roku announced the launch of Roku TV in Germany, with Metz blue and TCL as the first partners, and also the launch of three new Roku TV brands in Mexico: Aiwa, Daewoo and Sansui.
The launch of The Rich Eisen Show on the Roku Channel and the debut of the second season of Roku Recommends are also expected to aid the quarterly results.
In second-quarter 2022, Roku added 1.8 million active accounts to 63.1 million, driven by the popularity of Roku streaming players and Roku TV models.
The Zacks Consensus Estimate for third-quarter active accounts and ARPU is pegged at $64 million and $45.63, respectively, indicating an increase of 14.3% and 13.8% from the year-ago quarter’s reported figures.
In second-quarter 2022, Roku users streamed 20.7 billion hours, up 16.4% year over year. The consensus mark for streaming hours is pegged at 20.52 billion, suggesting an increase of 14% from the year-ago quarter’s reported figure.
Two new products in the device lineup, the Roku Express player and Roku Wireless Bass were also launched in the quarter. The Roku Express comes ready to stream, with dual-band Wi-Fi, a simple remote, increased storage, HDMI Cable, and an extensive library of free, live and premium TV selections. The newly designed Roku Wireless Bass provides high-powered sound for a theater-like experience.
Along with this, some latest enhancements were made to Roku’s operating system. The company introduced an all-new content discovery experience, The Buzz, to the Roku Home Screen Menu as well as two significant updates to its What to Watch feature, Continue Watching and an expanded platform-wide Save List.
However, Roku has been facing challenges from the macroeconomic environment, such as inflation and recessionary fear. The supply chain issues are causing disruptions in its player unit sales in terms of shipping delays, product availability issues and product price increases. Both consumers and advertisers have significantly curtailed spending, and the company expects this threat to curb its earnings for the quarter.
Key Developments
On Aug 3, Roku announced that Paramount+ (PARA - Free Report) launched as a Premium Subscription within The Roku Channel. This made Paramount+’s critically acclaimed originals, hit movies, a world-class library of popular series, 24/7 news and marquee sports accessible directly to consumers within The Roku Channel.
What Our Model Indicates
According to 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 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 a few companies worth considering, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
ZoomInfo Technologies (ZI - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #2. ZI’s shares have lost 29.6% in the year-to-date period compared with the Zacks Computer - Integrated Systems industry’s decline of 5.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. TME shares have lost 46.5% in the year-to-date period compared with the Zacks Internet - Content industry’s decline of 35.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.