Roku shares surge 50% on first-ever Earnings beat


Not only did this handily exceed a consensus analyst estimate for third-quarter revenue of $110 million, but it also marked a significant acceleration compared to Roku's 23% year-over-year revenue growth in the first half of the year.

Shares rose in extended trading to a high of $24.30 after closing at $18.84 Wednesday in NY before the results were released.

A number of other equities research analysts also recently issued reports on the stock.

The earnings report came out after the market close, and the stock surge happened during after-hours trading, but there is real good chance for Roku's stock price to keep its after hours gains because the company almost fired on all cylinders. The stock now has an average rating of "Hold" and a consensus target price of $26.20. The company reported a loss, adjusted for certain items, of 10 cents a share.

Roku lost $7.9 million during the quarter, less than the $16.7 million in losses that analysts were anticipating.

COPYRIGHT VIOLATION NOTICE: "Roku, Inc". If you are viewing this news story on another publication, it was copied illegally and reposted in violation of U.S. & global copyright & trademark legislation. CIBC began coverage on shares of Roku in a report on Monday, October 23rd. Viewership of free, ad-supported channels continues to rise, including The Roku Channel, which launched in September shortly before the IPO. Since then, Roku has experienced some volatility - it has gone as low as $15.75 and as high as $29.80. The stock was sold at an average price of $14.00, for a total value of $96,600,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Roku reported it had 16.7 million active accounts as of September 30, an 11 percent increase from the 15.1 million in the previous quarter. Citadel Advisors LLC acquired a new position in shares of Roku in the third quarter valued at approximately $1,122,000. Nationwide Fund Advisors bought a new stake in shares of Roku in the third quarter valued at about $1,009,000. LLC acquired a new position in shares of Roku in the third quarter valued at approximately $11,920,000. Institutional investors and hedge funds own 0.17% of the company's stock.

That math works for the company because Roku's platform is more profitable than the company's traditional streaming player equipment. The Company's products include Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories, such as cables, remote controls, power adapters and headphones.