Roku Soars on Strong Revenue Views, Surging Platform Growth
Roku Soars on Strong Revenue Forecast, Surging Platform Growth
(Bloomberg) -- Roku Inc. rallied Thursday after a revenue projection for the current quarter topped estimates and sales generated from its streaming platform accelerated.
The Los Gatos, California-based company forecast third-quarter revenue of $250 million to $255 million, exceeding average analyst estimate at $246.2 million. Platform revenue surged 86% in the second quarter to $167.7 million, an acceleration from growth of 79% in the first quarter.
The better-than-expected results drew at least one upgrade from analysts, with Stephens’ Kyle Evans lifting the stock to overweight from equalweight. Others on boosted their price targets, and Susquehanna set a new Street-high target at $135, up from $90.
The stock rose 14% in pre-market trading in New York, touching $115 and surpassing the July 16 closing high of $111.94. Roku shares have climbed more than three-fold this year.
To contact the reporter on this story: Jeran Wittenstein in San Francisco at jwittenstei1@bloomberg.net
To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net
©2019 Bloomberg L.P.