Roblox (RBLX) closed at $34.23 in the latest trading session, marking a -0.64% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 1.82%.
Prior to today's trading, shares of the online gaming platform had lost 25.58% over the past month. This has lagged the Consumer Discretionary sector's loss of 0.38% and the S&P 500's gain of 0.39% in that time.
Investors will be hoping for strength from Roblox as it approaches its next earnings release, which is expected to be May 10, 2023. In that report, analysts expect Roblox to post earnings of -$0.42 per share. This would mark a year-over-year decline of 55.56%. Our most recent consensus estimate is calling for quarterly revenue of $766.71 million, up 21.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.82 per share and revenue of $3.41 billion, which would represent changes of -17.42% and +18.59%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.03% higher. Roblox is currently sporting a Zacks Rank of #3 (Hold).
The Gaming industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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