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The company's earnings exceeded Zacon's consensus estimates over the past four quarters, with an average positive surprise of 85.4%. During the last quarter published, the company's adjusted loss of 9 cents per share was lower than Zacks' consensus estimate of a loss of 13 cents.
In addition, the first line of Roku has beaten the mark of consensus in the last four quarters. In the third quarter of 2018, revenues were $ 173 million, exceeding Zacks' consensus estimate of $ 171 million and growing 39% over the same quarter of the previous year.
Zacks' consensus estimate for fourth-quarter revenue is currently $ 261.5 million, representing a year-over-year growth of 38.9%. In addition, the consensus profit margin remained stable at 1 cent in the last seven days.
Roku, Inc. Price and EPS Surprise"data-reactid =" 11 ">Roku, Inc. ROKU is expected to release its fourth quarter 2018 results on February 21st.
The company's earnings exceeded Zacon's consensus estimates over the past four quarters, with an average positive surprise of 85.4%. During the last quarter published, the company's adjusted loss of 9 cents per share was lower than Zacks' consensus estimate of a loss of 13 cents.
In addition, the first line of Roku has beaten the mark of consensus in the last four quarters. In the third quarter of 2018, revenues were $ 173 million, exceeding Zacks' consensus estimate of $ 171 million and growing 39% over the same quarter of the previous year.
Zacks' consensus estimate for fourth-quarter revenue is currently $ 261.5 million, representing a year-over-year growth of 38.9%. In addition, the consensus profit margin remained stable at 1 cent in the last seven days.
Roku, Inc. Price and EPS Surprise
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Roku, Inc. Price and EPS Surprise | Quote from Roku, Inc.
Let's see how things stand before this announcement.
Key factors to consider
Roku's active accounts continue to experience strong growth as users' preferences for streaming services grow. In addition, the company's partnership with TV brands through its Roku television license program is one of the key drivers of active account growth.
In addition, Roku attracts users by offering alternative TV offers from streaming and on-demand video content providers. In particular, the company expects active accounts for the fourth quarter of 2018 to increase by 40% over the previous year to reach $ 27 million, which is positive.
This, aside from Roku's ability to attract advertisers and content publishers, allowing it to monetize its active account base, is expected to improve average revenue per user (ARPU) in the next quarter announced. . In particular, the ARPU of the last twelve months increased by 37% over the previous year, to stand at 17.34 USD in the third quarter of 2018, due to the rise of the ARPU video ads and graphics.
In addition, the Roku Ad Insights suite, which helps advertisers measure reach, efficiency and return on investment, is expected to increase the number of ads placed on the platform, thus strengthening the ARPU ads. In addition, as more and more advertisers turn to digital platforms due to the increasing number of cable cutters, we expect Roku to expand its advertising partners. Notably, about two-thirds of Advertising Age's top 200 national advertisers advertised on the platform.
In addition, content publishers are increasingly choosing Roku because of its highly engaged audience, measured in hours of streaming. Notably, streaming hours were 6.2 billion in the third quarter of 2018, up 63 percent from the previous year. Management anticipates that the fourth quarter of 2018 broadcast hours will rise to $ 7.3 billion, up 68% from one year to the next.
We believe that Roku's ability to attract advertisers and content creators, while creating a better user experience, will likely contribute to revenue growth.
What our model says
According to the Zacks model, a firm with a Zacks rank 1 ranking (strong buy), 2 (buy) or 3 (hold) with a positive profit ESP is likely to exceed estimates. It is best to avoid ranked actions (Zacks Rank # 4 or 5).
Roku has a # 3 Zack rank and an ESP of 0.00% gains. You can discover the best stock to buy or sell before publishing with our earnings ESP filter.
Stocks to consider
Here are some companies you may want to consider, because our model shows that they have the right mix of elements to make their results superior to those of their next releases:
Live Nation Entertainment LYV has a profit ESP of + 3.8% and a rank of Zacks # 1. You can see You will find here the complete list of today's Zacks # 1 stocks.
Churchill Downs, Incorporated CHDN has a profit EPS of + 12.9% and a rank of Zacks No. 2.
Steven Madden, Ltd. SHOO has a profit ESP of + 3.1% and a rank of Zacks n ° 2.
The hottest tech mega trend of all
Last year, it generated global revenues of $ 8 billion. By 2020, it is expected to climb to $ 47 billion. Well-known investor Mark Cuban said it would produce "the world's first trillionaires", but that should still leave a lot of money for regular investors who quickly make the right deals.
Check out the 3 best Zacks actions to follow this trend & gt; & gt;"data-reactid =" 19 ">
Roku, Inc. Price and EPS Surprise | Quote from Roku, Inc.
Let's see how things stand before this announcement.
Key factors to consider
Roku's active accounts continue to experience strong growth as users' preferences for streaming services grow. In addition, the company's partnership with TV brands through its Roku television license program is one of the key drivers of active account growth.
In addition, Roku attracts users by offering alternative TV offers from streaming and on-demand video content providers. In particular, the company expects active accounts for the fourth quarter of 2018 to increase by 40% over the previous year to reach $ 27 million, which is positive.
This, aside from Roku's ability to attract advertisers and content publishers, allowing it to monetize its active account base, is expected to improve average revenue per user (ARPU) in the next quarter announced. . In particular, the ARPU of the last twelve months increased by 37% over the previous year, to stand at 17.34 USD in the third quarter of 2018, due to the rise of the ARPU video ads and graphics.
In addition, the Roku Ad Insights suite, which helps advertisers measure reach, efficiency and return on investment, is expected to increase the number of ads placed on the platform, thus strengthening the ARPU ads. In addition, as more and more advertisers turn to digital platforms due to the increasing number of cable cutters, we expect Roku to expand its advertising partners. Notably, about two-thirds of Advertising Age's top 200 national advertisers advertised on the platform.
In addition, content publishers are increasingly choosing Roku because of its highly engaged audience, measured in hours of streaming. Notably, streaming hours were 6.2 billion in the third quarter of 2018, up 63 percent from the previous year. Management anticipates that the fourth quarter of 2018 broadcast hours will rise to $ 7.3 billion, up 68% from one year to the next.
We believe that Roku's ability to attract advertisers and content creators, while creating a better user experience, will likely contribute to revenue growth.
What our model says
According to the Zacks model, a firm with a Zacks rank 1 ranking (strong buy), 2 (buy) or 3 (hold) with a positive profit ESP is likely to exceed estimates. It is best to avoid ranked actions (Zacks Rank # 4 or 5).
Roku has a # 3 Zack rank and an ESP of 0.00% gains. You can discover the best stock to buy or sell before publishing with our earnings ESP filter.
Stocks to consider
Here are some companies you may want to consider, because our model shows that they have the right mix of elements to make their results superior to those of their next releases:
Live Nation Entertainment LYV has a profit ESP of + 3.8% and a rank of Zacks # 1. You can see You will find here the complete list of today's Zacks # 1 stocks.
Churchill Downs, Incorporated CHDN has a profit EPS of + 12.9% and a rank of Zacks No. 2.
Steven Madden, Ltd. SHOO has a profit ESP of + 3.1% and a rank of Zacks n ° 2.
The hottest tech mega trend of all
Last year, it generated global revenues of $ 8 billion. By 2020, it is expected to climb to $ 47 billion. Well-known investor Mark Cuban said it would produce "the world's first trillionaires", but that should still leave a lot of money for regular investors who quickly make the right deals.
See the 3 best Zacks actions to play this trend >>
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