Roku Now Expects Third-Quarter Revenue to Be Substantially Higher Than Its Previous Forecast
Streaming TV platform company (NASDAQ: ROKU) made several announcements Wednesday morning, and in one of them it unveiled plans to reduce its workforce head count by about 10% as part of the company's "continuing evaluation of its operations." While the company's cost-reduction efforts were notable, the big news for investors was likely buried deeper in the Securities and Exchange Commission (SEC) filing, where Roku disclosed that it now expects third-quarter revenue to be significantly higher than its previous forecast.
That management has the confidence to raise its revenue outlook so substantially, even though there are still over three weeks left in the quarter, suggests the company is seeing advertising spending ramp up on its platform. Indeed, the midpoint of the company's new revenue guidance range implies an acceleration in Roku's year-over-year (YOY) growth rate.
Here's a closer look at what Roku said, and why the streaming platform company's announcements are good news for shareholders.
Source Fool.com
Roku Stock
Currently there is a rather positive sentiment for Roku with 26 Buy predictions and 7 Sell predictions.
With a target price of 93 € there is a hugely positive potential of 66.16% for Roku compared to the current price of 55.97 €.
