What to Watch For in Roku Earnings

February 21, 2019 by 247chrislange

Roku Inc. (NASDAQ: ROKU) is scheduled to release its most recent quarterly results after the markets close on Thursday. The consensus estimates from Thomson Reuters are $0.03 in earnings per share (EPS) and $262.11 million in revenue. In the fourth quarter of last year, the company said it had EPS of $0.08 and $188.26 million in revenue.

At the beginning of January, the firm announced that it would be expanding its platform to include “Premium Subscriptions.” As a result, users will be able to watch both free ad-supported and paid premium entertainment in one easy-to-navigate interface, with personalized recommendations, where they can browse, trial and subscribe to popular services.

In addition to more than 10,000 free, ad-supported movies and TV episodes already available, the Roku Channel will soon offer users the option to add 25 or more Premium Subscriptions from providers such as Showtime, Starz and EPIX.

Premium Subscriptions will only be viewable within the Roku Channel. Additionally, search within the Roku Channel will be expanded, allowing users to easily search for keywords within the channel. The Roku Channel will make subscription streaming easy for users by providing one destination to watch premium entertainment from more than 25 providers with a single monthly bill and simple account management.

Rob Holmes, vice president of Programming and Engagement, commented:

We’re focused on making it easy to find great entertainment of all types on the platform and adding Premium Subscriptions is a natural evolution for The Roku Channel. As a top five channel by active account reach, The Roku Channel is already a great source for free, ad-supported entertainment and provides significant user engagement. By making it easy for users to discover, subscribe to and watch Premium Subscriptions, we believe this offering will result in increased subscriptions and user engagement for our subscription partners and an even better user experience.

Overall, Roku has outperformed the broad markets, with its stock up about 75% year to date. Over the past 52 weeks, the stock is up only 11.5%.

A few analysts weighed in on Roku ahead of the report:

  • Wedbush has an Outperform rating and a $65 price target.
  • Loop Capital has a Hold rating with a $40 price target.
  • Citigroup has a Neutral rating with a $44 target price.
  • KeyCorp has an Overweight rating and a $59 target price.

Shares of Roku were last seen down 3% at $52.00 on Wednesday, in a 52-week range of $26.30 to $77.57. The consensus price target is $56.62.

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