Financial services company Robinhood (NASDAQ: HOOD) will be reporting results this Tuesday after market close. Here’s what you need to know.
Robinhood missed analysts’ revenue expectations last quarter, reporting revenues of $1.28 billion, up 26.5% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates.
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 21.5% year on year, slowing from the 50% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.1%, meeting analysts’ expectations, and Netflix reported revenues up 16.2%, topping estimates by 0.5%. Coursera traded down 11.6% following the results while Netflix was also down 9.7%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 16.7% on average over the last month. Robinhood is up 30.1% during the same time and is heading into earnings with an average analyst price target of $101.15 (compared to the current share price of $84.77).
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