Selling Roku Now Could Be a Big Mistake
You should never count your blowout quarters before they hatch, and that seems to fit when it comes to Roku (NASDAQ: ROKU) this week. The pioneer in home streaming posted what seemed to be pretty spectacular numbers after Wednesday's market close.
Revenue soared 81% to $645.1 million in the second quarter, well above the $618.5 million analysts were targeting. A 117% surge in platform revenue helped lift flat year-over-year growth in player revenue. With its higher-margin platform business booming it's not a surprise that Roku's bottom line is growing even faster.
Roku's gross profit more than doubled through April, May, and June. Roku's net income of $0.52 a share reversed a year-ago deficit. It had a tax benefit inflating its earnings, but it would've still blown way past the $0.12 a share that Wall Street pros were expecting. Roku sees revenue decelerating in the current quarter -- the midpoint of its guidance calls for 51% top-line growth -- but it was also well ahead of where analysts were perched. The stock still initially tanked on the report.
Source Fool.com
