Roku

TV-streaming service Roku Inc. (ROKU) on Thursday forecast second-quarter sales that were above expectations, but warned of a higher bar for growth up ahead and moderating profit in the second half of the year. Roku said it expected second-quarter sales of $935 million, above FactSet estimates for $926 million. But executives said that “Looking ahead, we face difficult year-over-year growth rate comparisons within streaming-service distribution activities. This headwind is due to past price increases and a higher mix shift toward ad-supported offerings.” Roku reported first-quarter sales of $882 million, up 19% year over year, with a net loss per share of 35 cents. Both were better than expected. Shares were up 2.6% after hours.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our target $5 to $67 on a forward P/S of 2.48x our $3.89B 2024 sales estimate, or $27.05/share using a narrower risk premium. ROKU’s operating outlook shows modest gains in EBITDA, with $4M in 2023, a $95M consensus estimate in 2024, and $239M in 2025; these are not material to apply to the TEV/EBITDA valuation. A long-term DCF model to value ROKU is difficult, in our view, given the uncertainties in driving significant revenue growth, EBITDA, and profits three to five years out or longer. Guidance for Q1 2024 is for total net revenue of $850M, total gross profit of $370M, and adjusted EBITDA at breakeven. The launch of its own branded TVs held promise to spur new ROKU subscribers. However, Walmart’s (WMT 59 ****)

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think it is uncertain whether ROKU’s operating system holds great value in the fast-changing video streaming market as it attempts to be the preferred platform that viewers use to toggle easily between different streaming channels. The launch of its own branded TVs held promise to spur new subscribers at ROKU. However, Walmart’s (WMT 61 ****) planned $2.3B purchase of Vizio to bolster its own advertising business, like Amazon (AMZN 177 ****), is a negative for selling ROKU televisions through this retailer. ROKU’s operating outlook shows modest gains in EBITDA, with $4M in ’23, a $95M consensus estimate in ’24, and $239M in ’25; these are not material to apply TEV/EBITDA valuation. A long-term DCF model to value ROKU is difficult, in our view, given the uncertainties

By Emily Dattilo The competitive landscape is changing, and that presents problems for Roku, Wells Fargo says. Analysts led by Steven Cahall downgraded shares of the media-streaming company to Underweight from Equal Weight and slashed their target for the stock price to $51 from $77. They lowered their forecasts for net additions of subscribers, revenue, gross profit, and other metrics in a Tuesday report. In morning trading, Roku shares were down 1.4% to $63.46, while the S&P 500 was flat. The core of the issue is that earlier this month, when Walmart filed its fourth-quarter earnings, the retailer confirmed reports it was buying the smart TV manufacturer Vizio for about $2.3 billion, or $11.50 a share. The acquisition will help Walmart make gains with its advertising business, Walmart Connect, Barron’s reported. Owning a TV maker allows a company to snap up dollars from advertising, which is quickly becoming a profit

Needham analyst Laura Martin reiterates Roku (NASDAQ:ROKU) with a Buy and maintains $100 price target.

TV streaming pioneer sees continued growth in scale and engagement as a top choice for viewers’ TV experience SAN JOSE, Calif. – Feb. 15, 2024 – Roku, Inc. (NASDAQ: ROKU) has more than 80 million active accounts and counting, a major marker of the company’s growth and scale as consumers continue to move to TV streaming. Viewer engagement on Roku is also at a record high—for the first time, more than 100 billion hours were streamed on the platform in 2023, averaging a record of 4.1 hours per day per account in Q4. Additionally, in the U.S., Roku’s active account base is now bigger than the subscribers of the six largest traditional pay-TV providers* combined. “As the leading TV streaming platform, Roku aims to make television better for everyone,” said Anthony Wood, Founder and CEO, Roku. “In a world where one day all TV will be streamed, we’re immensely proud to be the

Wedbush analyst Michael Pachter reiterates Roku, Inc. (NASDAQ: ROKU) with a Outperform and maintains $120 price target.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: With ongoing worries on advertising spending, we lower our target price by $4 to $85 using a forward price to sales of 3.1x, in line with direct peers. We narrow our LPS by $0.50 to -$1.90 and start our 2025 LPS at -$1.10 per share. Roku, Inc. (NASDAQ: ROKU) posted Q4 2023 LPS of -$0.58, a $0.03 consensus miss. Our revenue forecast is $3.89B for 2024 and $4.42B for 2025 versus $3.48B in 2023, driven by subscriber growth and advertising revenue. ROKU’s Q4 net subscriber adds were +4.2M, or +14% Y/Y to 80.0M at year end, and ARPU declined 4% Y/Y to $39.92 per user. In Q4, the Platform segment realized 13% Y/Y revenue growth (84% of total revenue) and gross margins 55.3%, flat Y/Y. Devices was

Roku’s platform revenue should get a boost when it opens up demand to third-party demand-side platforms and retail media networks, allowing Roku to capture some additional advertising dollars and diversify its advertiser base, but ongoing weakness in the media and entertainment sector’s spending will probably cap the company’s overall ad growth at about 10% after that, Macquarie analysts say in a research note. They view the company’s FY24 prospects as mixed following what is expected to be a stronger 1Q, and cut the streaming heavyweight’s price target to $88 from $93. Shares fall 24% to $71.61.

Roku Inc (NASDAQ:ROKU) stock was trading lower by over 22% on Feb. 16 following a cautionary statement from the smart TV operating system company. Roku’s fourth-quarter earnings highlighted that the upcoming year is expected to be “challenging” due to a deceleration in spending within the entertainment industry. The company did, however, report a beat on its fourth-quarter financial results. Roku Q4 Earnings Highlights: Revenue Beat, EPS Beat, Q1 Guidance, 80 Million Active Accounts The results came amid an exciting earnings season. Here are some key analyst takeaways from the release. Macquarie Equity Research analyst Tim Nollen maintained his Outperform rating while reducing the price target from $93 to $88. Wedbush analyst Alicia Reese maintained Outperform rating and her 12-month price target as $120. Oppenheimer analyst Jason Helfstein downgraded the stock to Perform from Outperform, while removing his price target of $100 on the stock. Piper Sandler analyst Matt Farrell, CFA reiterated a Neutral rating and price target of

Roku, Inc. (NASDAQ: ROKU) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 44.2% Stephens & Co. → $105 Reiterates Overweight → Overweight 02/16/2024 64.8% Wedbush → $120 Reiterates Outperform → Outperform 02/16/2024 51.07% Susquehanna $100 → $110 Maintains Positive 02/16/2024 — Oppenheimer Downgrades Outperform → Perform 02/09/2024 64.8% Wedbush → $120 Reiterates Outperform → Outperform 01/19/2024 — Seaport Global Upgrades Sell → Neutral 12/18/2023 3% Seaport Global → $75 Downgrades Neutral → Sell 12/15/2023 -9.36% MoffettNathanson $64 → $66 Downgrades Neutral → Sell 11/27/2023 59.31% Cannonball Research → $116 Upgrades Neutral → Buy 11/02/2023 37.33% Susquehanna $95 → $100 Maintains Positive 11/02/2023 3% Pivotal Research $58 → $75 Upgrades Sell → Hold 10/31/2023 -24.47% MoffettNathanson → $55 Upgrades Sell → Neutral 10/23/2023 -3.87% Truist Securities $80 → $70 Maintains Hold 10/11/2023 11.24% Piper Sandler $90 → $81 Maintains Neutral 10/06/2023 —

Roku’s (ROKU) guidance implications for its platform growth and operating costs for the rest of the year were “muted” even as the streaming device maker delivered a fourth-quarter revenue beat, Macquarie said Friday. The company late Thursday reported that its fourth-quarter net loss narrowed year over year to $0.55 per share from $1.70, while net revenue rose to $984.4 million from $867.1 million. Analysts polled by Capital IQ expected a GAAP loss of $0.53 on revenue of $968.1 million. Platform revenue grew to $828.9 million from $731.3 million. That metric is expected to benefit from Roku’s recent strategy to open up demand to third-party demand-side platforms and retail media networks, Macquarie said in a Friday note. That would allow the company to capture incremental connected TV advertisement dollars and diversify its advertiser base, analysts, including Tim Nollen, wrote. However, “ongoing weak (media and entertainment) sector spending looks like to cap