Roku (NASDAQ:ROKU) Issues Earnings Results, Beats Expectations By $0.20 EPS

Roku (NASDAQ:ROKU) posted its quarterly earnings data on Thursday. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20, Zacks reports. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. Roku updated its Q1 2025 guidance to EPS and its FY 2025 guidance to EPS.

Roku Price Performance

NASDAQ ROKU traded up $10.95 on Friday, reaching $97.75. The company had a trading volume of 10,854,467 shares, compared to its average volume of 3,432,463. The firm has a market cap of $14.19 billion, a price-to-earnings ratio of -81.27 and a beta of 2.05. Roku has a fifty-two week low of $48.33 and a fifty-two week high of $104.96. The business has a 50 day moving average of $80.17 and a two-hundred day moving average of $73.28.

Insiders Place Their Bets

In related news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now directly owns 3,790 shares of the company’s stock, valued at $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at $518,940.16. This represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 97,885 shares of company stock valued at $7,911,162. 13.98% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of recent analyst reports. JMP Securities restated a “market outperform” rating and issued a $95.00 price target on shares of Roku in a research report on Monday, February 3rd. Wells Fargo & Company upgraded shares of Roku from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $74.00 to $129.00 in a research report on Friday. Morgan Stanley increased their price target on shares of Roku from $60.00 to $65.00 and gave the stock an “underweight” rating in a research report on Tuesday, October 29th. Jefferies Financial Group decreased their price objective on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Finally, JPMorgan Chase & Co. upped their target price on Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a research note on Friday. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $90.36.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.