Wedbush Upgrades Roku’s FY2024 Earnings Forecast

Roku, Inc. (NASDAQ:ROKU – Free Report) has recently seen an upgrade in its fiscal year 2024 earnings per share (EPS) estimates. Research analysts at Wedbush released a note to investors on Thursday, October 31st, which informed them of an upward revision. Analyst A. Reese now projects that Roku will earn ($1.19) per share for FY2024, a notable increase from the earlier forecast of ($1.39).

Analyst Ratings and Predictions

Wedbush has given Roku an “Outperform” rating along with a target price of $85.00 per share. The consensus among analysts for Roku's current full-year earnings stands at ($1.14) per share. Additionally, Wedbush provided specific estimates for Roku's quarterly earnings: for Q4 2024, EPS is expected to be ($0.54); for Q1 2025, ($0.41); for Q2 2025, ($0.26); for Q3 2025, ($0.05); and for Q4 2025, ($0.29). Looking even further ahead, they forecast FY2025 at ($1.02) EPS and FY2026 at $0.19 EPS.

Recent Analyst Actions

Several other equity analysts have also recently expressed their views on Roku. Robert W. Baird raised their price target from $56.00 to $75.00 while maintaining a “neutral” rating as of September 30th. On the same day that Wedbush made their update, Rosenblatt Securities also boosted their target price from $61.00 to $86.00, keeping their “neutral” rating. Guggenheim transitioned their rating from “neutral” to “buy” and set a new target at $75.00 on August 23rd. In a similar fashion, Wells Fargo increased their target from $72.00 to $74.00 with an “equal weight” rating on October 31st. Loop Capital, on the same date, raised their target price from $65.00 to $70.00, advising a “hold” on the stock.

Market Performance

As of Monday, Roku's stock traded up 3.7% and opened at $69.67. Roku has a market capitalization of $10.08 billion, with a P/E ratio of -58.06 and a beta of 2.07. Over the past year, the stock hit a low of $48.33 and a high of $108.84. The fifty-day simple moving average is $73.17, while the 200-day average sits at $63.94.

Recent Earnings Report

Roku's last quarterly earnings were announced on October 30th, showing a report of ($0.06) EPS for the quarter, which was better than the analysts’ consensus estimates of ($0.35) by $0.29. The company generated revenues of $1.06 billion, surpassing expectations of $1.02 billion and demonstrating a revenue increase of 16.5% from the same quarter last year.

Insider Transactions

In upcoming news, CFO Dan Jedda sold 1,000 shares of Roku on October 15th for an average price of $76.25, totaling around $76,250. Following this, he holds 53,267 shares valued at approximately $4,061,608.75. CEO Anthony J. Wood also sold 25,000 shares on October 10th at an average price of $77.20 for about $1.93 million. Insiders reportedly sold 69,776 shares worth about $5.27 million over the last quarter, with insiders holding 13.98% of the company's stock.

Institutional Investment Activity

Roku has seen increased interest from institutional investors. Allspring Global Investments Holdings LLC boosted its stake in Roku by 243.1% during the first quarter, acquiring 2,045 shares valued at $133,000. Other institutional players, like Private Advisor Group LLC, increased their shares by 65.5%, and Janney Montgomery Scott LLC raised its ownership by 206.7%. Currently, institutional investors hold 86.30% of Roku's shares.

Company Overview

Roku, Inc, along with its subsidiaries, operates a streaming platform that is popular in the United States and around the world. The company has two main segments: Platform and Devices. Its platform allows users to easily access a wide variety of content, including TV shows, movies, news, and sports, while the Platform segment also engages in digital advertising and revenue sharing.

Roku, Earnings, Forecast