Roblox to Report Q4 Earnings: What's in Store for the Stock?

Roblox Corporation RBLX is scheduled to report fourth-quarter 2024 results on Feb. 6, before the opening bell.In the last quarter, RBLX reported a loss of 37 cents per share, which was narrower than the Zacks Consensus Estimate and the year-ago quarter’s level.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Notably, the company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 10.95%.RBLX’s Trend in Estimate RevisionThe Zacks Consensus Estimate for loss has remained unchanged at 46 cents per share in the past 30 days. The company reported a loss of 52 cents per share in the year-ago quarter.Roblox Corporation Price and EPS Surprise Roblox Corporation price-eps-surprise | Roblox Corporation QuoteLet us see how things might have shaped prior to the announcement.Factors Likely to Shape RBLX’s Quarterly ResultsRoblox’s fourth-quarter 2024 performance is expected to have benefited from growth in its user and developer base and strength in daily engagement levels on the platform. This trend is likely to have contributed to increased activity and bookings.For fourth-quarter 2024, RBLX expects revenues in the band of $935-$960 million, indicating a year-over-year increase of 25% to 28%. RBLX expects adjusted EBITDA to be between $10 million and $30 million.Also, its strategic investments in platform quality and cost control are expected to have supported growth. The company’s infrastructure and safety enhancements, along with targeted hiring in areas like Artificial intelligence (AI) and advertising, are likely to have aided its performance in the to-be-reported quarter.Roblox has been experiencing significant growth in bookings, driven by efforts to expand its user base and enhance platform appeal. RBLX expects bookings to be between $1.336 billion and $1.361 billion, indicating growth rate of 19% to 21%. The Zacks Consensus Estimate for bookings in the to-be-reported quarter is pegged at $1.376 billion.The growing user base across global regions, including the United States and Canada, along with increased daily active users (DAUs) and hours engaged, is expected to have contributed to the company’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for average DAUs is pegged at 89.1 million, up from 71.5 million reported in the year-ago quarter.  The consensus estimate for hours engaged is currently pegged at 20 billion, up from 15.5 billion reported in the year-ago quarter.Despite significant growth in bookings and user engagement, profitability remains a challenge for RBLX. Increased investments in research and development, along with marketing expenses, are expected to have kept the company’s margins under pressure in the to-be-reported quarter. The company expects consolidated net loss to be between $303 million and $283 million, down from $325.3 million reported in the year-ago quarter.What Our Model Says About RBLXOur proven model does not conclusively predict an earnings beat for Roblox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you will see below.RBLX’s Earnings ESP: RBLX has an Earnings ESP of -0.97%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Zacks Rank of RBLX: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Stocks Poised to Beat Earnings EstimatesHere are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present.LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis Report Rush Street Interactive, Inc. (RSI): Free Stock Analysis Report Roblox Corporation (RBLX): Free Stock Analysis Report Life Time Group Holdings, Inc. (LTH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks