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Wednesday, November 7, 2018

Roku plunges 12% despite beating on the top and bottom lines

Shares of Roku plunged as much as 12 percent in extended trading Wednesday despite beating on both the top and bottom lines in its third-quarter earnings.

Here's how the company did compared with what Wall Street was expecting:

  • Loss per share: 9 cents vs. 12 cents, forecast by Refinitiv consensus estimates
  • Revenue: $173.4 million vs. $169.1 million, forecast by Refinitiv consensus estimates

Roku raised full-year revenue guidance to a range of $722 million to $732 million, up from a previous range of $710 million to $730 million. That new guidance comes in just above Wall Street estimates of $722.8 million, according to Refinitiv estimates.

The company made its name selling over-the-top streaming devices and striking up partnerships with content companies like Netflix and Hulu. Roku has been trying to move beyond hardware though, introducing a curated Roku channel of free movies and TV for device owners.

It's not immediately clear the strategy is paying off, though.

Revenue from Roku players handily beat Wall Street estimates, totaling $73.3 million compared with $67 million forecast by StreetAccount and FactSet. Revenue from the company's platform segment, though, came in below analyst projects. Roku posted $100.1 million for the division, compared with $103.2 million forecast by StreetAccount and FactSet.

This story is developing. Please check back for updates.

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