Financial services company Robinhood (NASDAQ: HOOD) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
Robinhood missed analysts’ revenue expectations last quarter, reporting revenues of $1.07 billion, up 15.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates. It reported 27.4 million users, up 6.2% year on year.
Is Robinhood a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Robinhood’s revenue to grow 30% year on year, slowing from the 45% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Robinhood has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Robinhood’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 2.2%, and Netflix reported revenues up 13.4%, in line with consensus estimates. Alphabet traded down 7.1% following the results while Netflix was also down 7.3%.
Read our full analysis of Alphabet’s results here and Netflix’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Robinhood is down 6.6% during the same time and is heading into earnings with an average analyst price target of $121.78 (compared to the current share price of $95.07).
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