Yahoo Finance Earnings To Watch: Roku (ROKU) Reports Q2 Results Tomorrow
Streaming TV platform Roku (NASDAQ: ROKU) will be reporting results tomorrow after the bell. Here's what to expect.
Roku beat analysts' revenue expectations by 3.7% last quarter, reporting revenues of $881.5 million, up 19% year on year. It was a decent quarter for the company, with strong growth in its users but slow revenue growth. It reported 81.6 million monthly active users, up 14% year on year.
Is Roku a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Roku's revenue to grow 10.7% year on year to $937.9 million, in line with the 10.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.44 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Roku has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 4.9% on average.
Looking at Roku's peers in the consumer subscription segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 16.8%, meeting analysts' expectations, and Coursera reported revenues up 10.8%, topping estimates by 3.5%. Netflix traded down 1.5% following the results while Coursera was up 45.1%.
Read our full analysis of Netflix's results here and Coursera's results here.
There has been positive sentiment among investors in the consumer subscription segment, with share prices up 2.5% on average over the last month. Roku is down 7% during the same time and is heading into earnings with an average analyst price target of $72.9 (compared to the current share price of $57.09).
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