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The Zacks Consumer Discretionary sector has sailed through rough waters in 2022, down more than 35% and lagging behind the S&P 500 by a fair margin.
A stock that quickly gained popularity residing in the realm, Roblox Corp. (RBLX - Free Report) , is on deck to unveil Q3 earnings on November 9th, before the market open.
Roblox develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds, and Roblox Studio, a toolset that allows developers and creators to build, publish and operate 3D experiences and other content.
Currently, the stock carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an F. How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, RBLX shares have sailed through rough waters, down more than 60% and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Over the last three months, RBLX shares have found little relief, down more than 15% and again underperforming the S&P 500.
Image Source: Zacks Investment Research
Currently, Roblox shares trade at a 7.7X forward price-to-sales ratio, undoubtedly on the higher end of the spectrum and well above its Zacks sector average. Still, it’s worth noting that the current value is nearly half its median of 14.1X since its IPO in 2021.
The company carries a Value Style Score of an F.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish regarding their earnings outlook, with three negative earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of -$0.37 indicates a Y/Y earnings decline of more than 180%.
Image Source: Zacks Investment Research
The company’s top-line is in better health; the Zacks Consensus Sales Estimate of $695 million suggests an improvement of roughly 9% from year-ago quarterly sales of $638 million.
Quarterly Performance
RBLX has struggled to exceed bottom-line estimates, falling short of the Zacks Consensus EPS Estimate in five of its last six quarters. In its latest print, the company fell short of earnings expectations by roughly 30%.
Top-line results have been much more positive; RBLX has exceeded revenue estimates in four of its last six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
RBLX shares have struggled to find their footing in 2022, underperforming the S&P 500 across several timeframes.
Value-focused investors may be steered away due to its Value Style Score of an F.
Analysts have been bearish for the quarter to be reported over the last several months, with estimates indicating a decrease in earnings but an uptick in revenue.
The company has regularly fallen short of EPS expectations, but top-line results have been much more promising.
Heading into the release, Roblox Corp. (RBLX - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -6.8%.
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Roblox Q3 Preview: Rebound Quarter Inbound?
The Zacks Consumer Discretionary sector has sailed through rough waters in 2022, down more than 35% and lagging behind the S&P 500 by a fair margin.
A stock that quickly gained popularity residing in the realm, Roblox Corp. (RBLX - Free Report) , is on deck to unveil Q3 earnings on November 9th, before the market open.
Roblox develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds, and Roblox Studio, a toolset that allows developers and creators to build, publish and operate 3D experiences and other content.
Currently, the stock carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an F. How does everything else stack up? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, RBLX shares have sailed through rough waters, down more than 60% and coming nowhere near the general market’s performance.
Image Source: Zacks Investment Research
Over the last three months, RBLX shares have found little relief, down more than 15% and again underperforming the S&P 500.
Image Source: Zacks Investment Research
Currently, Roblox shares trade at a 7.7X forward price-to-sales ratio, undoubtedly on the higher end of the spectrum and well above its Zacks sector average. Still, it’s worth noting that the current value is nearly half its median of 14.1X since its IPO in 2021.
The company carries a Value Style Score of an F.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bearish regarding their earnings outlook, with three negative earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of -$0.37 indicates a Y/Y earnings decline of more than 180%.
Image Source: Zacks Investment Research
The company’s top-line is in better health; the Zacks Consensus Sales Estimate of $695 million suggests an improvement of roughly 9% from year-ago quarterly sales of $638 million.
Quarterly Performance
RBLX has struggled to exceed bottom-line estimates, falling short of the Zacks Consensus EPS Estimate in five of its last six quarters. In its latest print, the company fell short of earnings expectations by roughly 30%.
Top-line results have been much more positive; RBLX has exceeded revenue estimates in four of its last six quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
RBLX shares have struggled to find their footing in 2022, underperforming the S&P 500 across several timeframes.
Value-focused investors may be steered away due to its Value Style Score of an F.
Analysts have been bearish for the quarter to be reported over the last several months, with estimates indicating a decrease in earnings but an uptick in revenue.
The company has regularly fallen short of EPS expectations, but top-line results have been much more promising.
Heading into the release, Roblox Corp. (RBLX - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -6.8%.