Is Roku Stock a Buy?
Roku (NASDAQ: ROKU) stock is down over 8% following the release of the company's third-quarter earnings report on Nov. 3.
Revenue rose 51% year over year to $680.0 million last quarter, but that figure missed the analyst consensus estimate by $3.4 million. Net income surged year over year from $12.9 million to $68.9 million, or $0.48 per share, which easily beat analysts' expectations for just $0.06. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) similarly surged 132% to $130.1 million.
But management's guidance spooked the market. For the current quarter, Roku expects revenue to grow 37% at the midpoint of its range, falling short of the consensus forecast for 44% growth, while adjusted EBITDA is set to decline 34% to 43%.
Source Fool.com
