Financial services company Robinhood (NASDAQ: HOOD) will be reporting earnings this Tuesday afternoon. Here’s what you need to know.
Robinhood beat analysts’ revenue expectations last quarter, reporting revenues of $1.31 billion, up 32.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and solid growth in its users. It reported 28.4 million users, up 7.2% 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 12.1% year on year, slowing from the 100% 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 Q3 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 2%, and Netflix reported revenues up 11.8%, in line with consensus estimates. Meta traded down 7.5% following the results while Netflix was also down 5.3%.
Read our full analysis of Meta’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 7.7% on average over the last month. Robinhood is down 18.5% during the same time and is heading into earnings with an average analyst price target of $134.90 (compared to the current share price of $94.88).
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