Roku (NASDAQ:ROKU) Issues Earnings Results, Beats Estimates By $0.25 EPS

Roku (NASDAQ:ROKU) issued its earnings results on Thursday. The company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25, FiscalAI reports. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.35 billion.

Roku Trading Down 5.7%

Roku stock traded down $5.03 during trading hours on Thursday, hitting $82.86. 10,795,938 shares of the stock traded hands, compared to its average volume of 3,452,884. Roku has a one year low of $52.43 and a one year high of $116.66. The firm’s 50-day moving average price is $104.38 and its two-hundred day moving average price is $98.99. The company has a market cap of $12.24 billion, a PE ratio of -414.28 and a beta of 1.99.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat Q4 estimates — EPS of $0.53 vs. $0.28 consensus and revenue of $1.39B vs. $1.35B expected, a clear near-term earnings beat that supports the ad/streaming growth story. Roku Stock Rallies After Q4 Earnings: Here’s Why
• Positive Sentiment: Management forecasted full-year revenue above Street estimates, citing an expected rebound in digital advertising and a shift to ad-supported streaming — guidance that underpins upside to the top line. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Roku signaled product/monetization expansion with plans to roll out premium subscription bundles, which could increase ARPU and diversify revenue beyond ads. Roku Breezes Past Wall Street’s Q4 Earnings Outlook, Signals Plan For Premium Subscription Bundles
• Positive Sentiment: Analyst sentiment improved — Zacks upgraded Roku to a “Strong Buy,” which can attract some buying interest from retail and quant strategies. Zacks.com
• Neutral Sentiment: Ongoing content and platform moves (more free channels, expanded local-news access) increase user value and engagement, but the immediate revenue impact is uncertain. How to watch local news on Roku for free
• Negative Sentiment: Despite the beat, shares have decreased today — likely from profit-taking after the run-up, high trading volume, and investors re‑rating expectations; short-term volatility is common after mixed headlines. MarketBeat ROKU quote & stats
• Negative Sentiment: Institutional trimming and lingering fundamentals: Allianz reduced its ROKU position and the company still shows a negative net margin/negative ROE and a negative forward EPS expectation, which can cap multiple expansion. Allianz reduces Roku holdings
• Negative Sentiment: Consumer/legal noise (reports of device issues/lawsuits) is present; while not core to earnings, such items can create headline risk if they escalate. Lawsuit report

Analyst Upgrades and Downgrades

Several research analysts have recently commented on ROKU shares. Arete Research set a $132.00 price objective on Roku and gave the stock a “buy” rating in a report on Monday, January 5th. Benchmark reaffirmed a “buy” rating on shares of Roku in a research note on Wednesday, February 4th. Wedbush boosted their price objective on Roku from $115.00 to $130.00 and gave the company an “outperform” rating in a research report on Thursday, December 11th. Susquehanna restated a “positive” rating and issued a $130.00 target price on shares of Roku in a report on Friday, October 31st. Finally, Evercore reaffirmed a “positive” rating on shares of Roku in a research note on Friday, October 31st. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Roku has an average rating of “Moderate Buy” and a consensus price target of $118.72.

Insider Buying and Selling

In other news, Director Neil D. Hunt sold 2,000 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $108.98, for a total value of $217,960.00. Following the sale, the director directly owned 7,782 shares of the company’s stock, valued at $848,082.36. This represents a 20.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charles Collier sold 14,361 shares of the stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $94.99, for a total transaction of $1,364,151.39. Following the completion of the transaction, the insider owned 200 shares of the company’s stock, valued at approximately $18,998. The trade was a 98.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 184,790 shares of company stock worth $19,685,259 over the last quarter. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Rakuten Securities Inc. boosted its position in shares of Roku by 55.6% in the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after purchasing an additional 158 shares in the last quarter. National Bank of Canada FI purchased a new position in Roku during the third quarter valued at $51,000. Larson Financial Group LLC grew its stake in shares of Roku by 32.1% in the third quarter. Larson Financial Group LLC now owns 556 shares of the company’s stock worth $56,000 after acquiring an additional 135 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock valued at $123,000 after acquiring an additional 826 shares in the last quarter. Finally, Parallel Advisors LLC raised its position in shares of Roku by 12.9% in the 3rd quarter. Parallel Advisors LLC now owns 1,597 shares of the company’s stock worth $160,000 after purchasing an additional 182 shares during the last quarter. Institutional investors own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.