Earnings To Watch: Robinhood (HOOD) Reports Q1 Results Tomorrow

StockStory
29 Apr
Earnings To Watch: Robinhood (HOOD) Reports Q1 Results Tomorrow

Financial services company Robinhood (NASDAQ:HOOD) will be reporting earnings tomorrow afternoon. Here’s what to expect.

Robinhood beat analysts’ revenue expectations by 7.7% last quarter, reporting revenues of $1.01 billion, up 115% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ number of funded customers estimates. It reported 25.2 million users, up 7.7% year on year.

Is Robinhood a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Robinhood’s revenue to grow 48.2% year on year to $915.7 million, improving from the 40.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Robinhood has missed Wall Street’s revenue estimates three 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. Alphabet delivered year-on-year revenue growth of 12%, beating analysts’ expectations by 1.2%, and Coursera reported revenues up 6.1%, topping estimates by 2.3%. Alphabet traded up 1.8% following the results while Coursera was also up 14.1%.

Read our full analysis of Alphabet’s results here and Coursera’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.5% on average over the last month. Robinhood is up 17.7% during the same time and is heading into earnings with an average analyst price target of $58.18 (compared to the current share price of $48.98).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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