Why Roku Shares Crashed Today
Shares of entertainment technology specialist Roku (NASDAQ: ROKU) fell as much as 8.9% on Thursday, following the company's third-quarter earnings report. The reported figures were a mixed bag and Roku's revenue guidance for the next reporting period fell far short of analyst expectations.
In the third quarter, Roku's sales rose 51% year over year to $680 million. This result was slightly below Wall Street's consensus estimates of $683 million. On the bottom line, earnings surged from $0.09 to $0.46 per diluted share. Here, your average analyst would have settled for earnings near $0.06 per share.
For the fourth quarter, Roku expects revenue to land in the neighborhood of $892 million, 37% above the year-ago reading but well short of the $944 million analyst consensus. Earnings are headed toward a breakeven result but analysts were projecting a net profit of $0.22 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to fall from $114 million in the fourth quarter of 2020 to $70 million.
Source Fool.com
