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Roku Crushes Earnings Estimates, Stock Tumbles on Soft Q1 Guidance

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Roku, Inc. (ROKU - Free Report) just released its fourth-quarter financial results, posting adjusted earnings of 6 cents per share and revenues of $188.3 million.

Currently, ROKU is a Zacks Rank #3 (Hold), but that could change based on today’s results. The stock is currently down 18.30% to $41.75 per share in after-hours trading shortly after its earnings report was released.


Beat earnings estimates. The company posted adjusted earnings of $0.06 per share, beating the Zacks Consensus Estimate of -$0.11.

Beat revenue estimates. The company saw revenue figures of $188.3 million, beating our consensus estimate of $183.2 million.

Roku had 19.3 million active accounts at the end of the quarter, up 44% from the year-ago period. Total streaming hours grew about 59% to reach 14.8 billion during the quarter. Average revenue per user climbed 48% to touch $13.78.

Roku also announced its initial outlook for the first quarter and the full fiscal 2018 period. The company expects Q1 revenues in the range of $120 to $130 million and full-year revenues in the range of $660 million to $690 million. That Q1 guidance is on the low end of our current consensus estimate of $129.9 million, but Roku’s full-year revenue guidance outpaces our current consensus mark of $656.9 million.

Here’s a graph that looks at Roku’s price performance since its IPO:

Roku, Inc. Price and Consensus

Roku, Inc. Price and Consensus | Roku, Inc. Quote

Roku, Inc. is involved in creating streaming platform for delivering entertainment to the television. The Company's products primarily includes Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories such as cables, remote controls, power adapters and headphones.

Check back later for our full analysis on Roku’s earnings report!

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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