ROKU to Report Q3 Earnings: What's in Store for ROKU Stock?

Roku ROKU is slated to report its third-quarter 2024 results on Oct. 30.For the third quarter of 2024, ROKU expects total net revenues of $1.01 billion, total gross profit of roughly $440 million and adjusted EBITDA of $45 million.The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.02 billion, indicating growth of 11.52% from the figure reported in the year-ago quarter.The consensus mark for fiscal third-quarter loss is pegged at 35 cents per share compared with the loss of $2.33 per share in the year-ago reported figure. The earnings estimate has remained unchanged over the past 30 days.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average earnings surprise being 24.87%.Roku, Inc. Price and EPS Surprise Roku, Inc. price-eps-surprise | Roku, Inc. QuoteFind the latest EPS estimates and surprises on Zacks Earnings Calendar.Let’s see how things have shaped up for the upcoming announcement:Factors to Consider Ahead of Q3 ResultsROKU’s third-quarter 2024 top line is expected to have benefited from increasing Streaming Households and growing viewer engagement in TVs. In the second quarter of 2024, Streaming Households increased to 83.6 million, an increase of 14% year over year. This trend is expected to have continued in the to-be-reported quarter.In the to-be-reported quarter, the company announced various notable partnerships, such as PEOPLE & Entertainment Weekly, to stream the 76th Emmy Awards. ROKU also announced a collaboration with Sony for a streaming deal that will add NFL's series, GMFB: Overtime, to the Good Morning Football series. This is expected to have boosted ROKU’s top line in the second quarter of 2024.ROKU’s diversifying revenue streams, including Roku-billed subscriptions and premium subscriptions, and advertising activities, including traditional video streaming and unique ad products and sponsorships, are expected to have driven the top line by offsetting market-driven pricing changes.ROKU’s efforts to increase, create and develop monetization products are expected to have driven the top line. ROKU’s strategy of effectively utilizing its home screen to generate better ad revenues is expected to have been reflected in the third quarter of 2024. Platform revenues were $824 million in the second quarter of 2024, up 11% year over year. The trend is expected to have continued in the to-be-reported quarter.Roku’s inventory supply to advertisers and increase in the number of ad units and categories are expected to have driven the top line by expanding clientele and enabling better churn for partners.ROKU’s UID2 integration is expected to have enhanced third-party relationships and data collaboration and driven platform revenues by increasing efficiency in the third quarter of 2024.  This Zacks Rank #2 (Buy) company’s top line is expected to have gained from ROKU Exchange providing a differentiated tech stack in the market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stiff Competition Headwinds for ROKU’s ProspectsIntense competition from Netflix NFLX, Disney DIS owned Disney+ and EchoStar’s SATS Sling Media is expected to have remained a constant headwind.Netflix and Disney’s enhanced ad-supported tiers in streaming platforms and SATS’ Sling Medias’ new channel offering of a 4K viewing experience are expected to have hurt ROKU’s active user growth in the to-be-reported quarter.ROKU’s weak Media and Entertainment vertical and device business is expected to negatively impact third-quarter 2024 results. Lower spending from certain advertising verticals is expected to hurt the top line in the near term.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 Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report EchoStar Corporation (SATS): Free Stock Analysis Report Roku, Inc. (ROKU): 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