Financial News
Robinhood (HOOD) Reports Q3: Everything You Need To Know Ahead Of Earnings
Financial services company Robinhood (NASDAQ:HOOD) will be announcing earnings results tomorrow afternoon. Here’s what to look for.
Robinhood beat analysts’ revenue expectations by 6.1% last quarter, reporting revenues of $682 million, up 40.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and exceptional revenue growth. It reported 24.2 million users, up 4.3% year on year.
Is Robinhood a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Robinhood’s revenue to grow 39.1% year on year to $649.4 million, improving from the 29.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing 3 upward and 5 downward revisions over the last 30 days. Robinhood has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Robinhood’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.
Read our full analysis of Netflix’s results here and Coursera’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Robinhood is up 19.8% during the same time and is heading into earnings with an average analyst price target of $25.72 (compared to the current share price of $28.05).
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