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Roku Inc (ROKU) Shares Plummet Following Q4 Earnings

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Roku Inc (NASDAQ: ROKU ) unveiled its latest quarterly earnings results after hours today, yielding better-than-expected results, but shares still fell sharply.

Source: Roku

The video streaming service device maker announced a profitable quarter as the company's licensing and advertising revenue increased, with total revenue reaching $188.26 million for its fourth quarter, topping the year-ago total of $147.3 million.

Analysts were calling for revenue of $182.5 million, according to data compiled by FactSet . Roku's platform business - which includes the licensing fees the company generates from device partners and advertising revenue - increased to $85.44 million during its fourth quarter, amounting to 45% of the company's total revenue.

On the earnings front, the company brought in $9.49 million, topping the $3.38 million it earned during the fourth quarter of fiscal 2016. However, adjusted earnings came in at $6.9 million as the company cleared itself of some debt by shelling out $2.3 million.

Roku's earnings in the year-ago quarter were $3.2 million. On a per-share basis, the company earned six cents, which was considerably higher than the Wall Street consensus estimate of a loss of 10 cents per share, according to data compiled by FactSet.

For its first quarter of fiscal 20018, analysts predict that Roku will post a loss of 20 cents per share, while revenue is slated to arrive at $130.8 million.

ROKU stock declined more than 20.6% after the bell Wednesday. The stock only fell 0.2% during regular trading hours.

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The post Roku Inc (ROKU) Shares Plummet Following Q4 Earnings appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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