1 Important Number Makes Roku a Screaming Buy After Earnings
Don't let Roku's (NASDAQ: ROKU) post-earnings sell-off fool you. The streaming-service aggregator delivered strong results for the third quarter. Revenue increased by 51% year over year, and adjusted earnings per share (EPS) of $0.48 completely blew away the consensus estimate of $0.09.
So why is the stock price down? Roku's active accounts came in just shy of Wall Street's estimates: 56.4 million, compared to estimates for 56.7 million. That tiny miss might seem like a silly reason to sell, but more concerning was management's outlook for the fourth quarter, which was softer than market participants wanted to see.
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Source Fool.com
