After the close, connected TV (CTV) pioneer Roku (ROKU) is scheduled to report 3Q21 earnings with a conference call following at 5:00 p.m. ET.
The revenue consensus estimate stands at revenue of $894.1 mln with EPS of $0.04. ROKU's Q4 adjusted EBITDA guidance of $65-$75 mln was also well below expectations
A slowdown in TV sales has had a snowball effect on net subscription additions for ROKU, which were rather meager at +1.3 mln last quarter (down from 1.5 mln in Q2).
Expectations are very low heading into tonight's report. If ROKU posts an upside print and if its outlook and commentary suggest that the worst of the supply chain woes are behind it, then the stock could bounce sharply higher from these oversold levels
ROKU has not missed the EPS or revenue consensus estimate in at least five years
TECHS:
This former high-flyer is now facing a formidable set of headwinds. Most notably, its TV OEM partners are contending with significant supply chain constraints that limited inventory levels.
Sentiment on ROKU has soured immensely over the past several months. After reaching record highs last July, shares have crashed by 70%. The collapse has made the stock's valuation much more appealing with a forward P/S of 5.7x.
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