Roku Reports Record Q4 Results, Strong Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy ROKU?
Source: Newsfilter
- Strong Performance: Roku's fourth-quarter adjusted earnings per share reached 53 cents, exceeding analysts' expectations of 28 cents, while revenue hit $1.39 billion, surpassing the anticipated $1.35 billion, indicating robust financial health.
- Subscription Growth: The company reported that the fourth quarter was its 'biggest quarter ever' for net adds to premium subscriptions, reflecting a significant shift towards centralized subscription services through the Roku platform, enhancing its competitive edge.
- Positive Outlook: Roku expects current quarter revenue of $1.2 billion, exceeding the $1.16 billion forecast by analysts, with full-year revenue projected at $5.5 billion, also above the $5.34 billion estimate, showcasing ongoing growth potential.
- Enhanced Market Position: Following the earnings report, Roku's shares surged over 6%, with analysts upgrading the stock from neutral to buy, highlighting its formidable presence in the U.S. streaming market and anticipated benefits from partnerships with Amazon and new advertising tools.
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Analyst Views on ROKU
Wall Street analysts forecast ROKU stock price to rise
23 Analyst Rating
19 Buy
4 Hold
0 Sell
Strong Buy
Current: 82.930
Low
100.00
Averages
123.10
High
145.00
Current: 82.930
Low
100.00
Averages
123.10
High
145.00
About ROKU
Roku, Inc. operates a television (TV) streaming platform. The Company connects viewers to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with capabilities to engage consumers. The Company’s segments include platform and devices. The platform segment is engaged in the sale of digital advertising (including direct and programmatic video advertising, media and entertainment promotional spending, and related services) and streaming services distribution (including subscription and transaction revenue shares, the sale of premium subscriptions, and the sale of branded app buttons on remote controls). The devices segment is engaged in the sale of streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. The Company sells the majority of its devices in the United States through retailers and distributors as well as through the Company’s website.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Outlook: Roku's upcoming Q4 earnings report is expected to show earnings of $0.28 per share and revenue of $1.35 billion, indicating a 12% year-over-year growth, highlighting the company's potential for platform revenue growth.
- Market Reaction Volatility: Roku's stock has shown significant volatility post-earnings, with a 6% jump last quarter after beating expectations, but prior reports saw declines of 15% and 9%, indicating uncertainty in market sentiment.
- Management Confidence: The management expressed optimism in Q3, projecting double-digit growth in platform revenue and expanding operating margins by 2026, reflecting confidence in long-term growth prospects.
- Stock Performance: As of Thursday, Roku shares fell 8.44% to $80.47, reflecting cautious investor sentiment ahead of the earnings report and concerns regarding the company's future performance.
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- Strong Performance: Roku's fourth-quarter adjusted earnings per share reached 53 cents, exceeding analysts' expectations of 28 cents, while revenue hit $1.39 billion, surpassing the anticipated $1.35 billion, indicating robust financial health.
- Subscription Growth: The company reported that the fourth quarter was its 'biggest quarter ever' for net adds to premium subscriptions, reflecting a significant shift towards centralized subscription services through the Roku platform, enhancing its competitive edge.
- Positive Outlook: Roku expects current quarter revenue of $1.2 billion, exceeding the $1.16 billion forecast by analysts, with full-year revenue projected at $5.5 billion, also above the $5.34 billion estimate, showcasing ongoing growth potential.
- Enhanced Market Position: Following the earnings report, Roku's shares surged over 6%, with analysts upgrading the stock from neutral to buy, highlighting its formidable presence in the U.S. streaming market and anticipated benefits from partnerships with Amazon and new advertising tools.
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- Platform Revenue Growth: Roku's fourth-quarter platform revenue increased by 18%, driven by strong video advertising performance, which underscores the company's healthy position in the advertising sector and enhances its market standing.
- Favorable Industry Trends: Analysts noted that Roku is expected to benefit from the growth in CTV advertising, ongoing domestic and international streaming video expansion, and improving fill rates in its advertising business, which are anticipated to drive growth into 2026.
- Enhanced Partnerships: The partnership with Amazon DSP is expected to provide additional growth momentum for Roku, alongside increased adoption of premium subscriptions, further boosting advertising revenue.
- Optimistic Investment Outlook: Evercore ISI described Roku's report as a “clean beat,” expecting benefits from U.S. political ad spending and the multi-year growth driver of its Ad Manager platform, maintaining an “outperform” rating and raising the price target to $150.
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