Crowder Securities Limited - Why is Roku stock soaring today?

Shares of Roku (ROKU), a connected-TV platform firm, jumped on Wednesday after the company submitted an unexpected report.
WAN CHAI, Hong Kong - Sept. 7, 2023 - PRLog -- The report provided revised financial projections for the third quarter of 2023. It also featured some new methods to save costs and increase profitability.

The market appeared to welcome this announcement at first, with Roku stock trading up to 15% higher early in the day. However, the stock was still up 7% as of 10:40 a.m. ET.

Roku's third-quarter forecasts have risen significantly since July. Management forecasted $815 million in sales for the third quarter in the second quarter. It now anticipates sales of $835 million to $875 million, representing a 10% to 15% year-over-year increase.

Roku also anticipates lower adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) losses. It had expected an adjusted EBITDA loss of $50 million, but now expects a loss of $20 million to $40 million.

Today's market is energized by more growth and smaller losses.

This Roku news is marked with asterisks. First, the corporation is cutting off around 10% of its workforce, incurring one-time severance costs. It also expects impairment costs as it consolidates office space. Finally, it is reducing its use of streaming video material, which has a one-time expense as well.

When everything is said and done, Roku might face up to $330 million in one-time charges as a result of today's revelation. Its outlook for Q3 adjusted EBITDA excludes these items. As a result, investors should revise their estimates for the timeframe of Roku's increased unadjusted profitability. It may not be seen this year.

Crowder Securities Limited is dedicated to equal opportunity in all areas of work and will not allow any kind of unlawful discrimination or harassment. You may know us more at

Crowder Securities Limited
Source: » Follow
Posted By:*** Email Verified
Tags:Crowder Securities Limited
Location:Wan Chai - Hong Kong Island - Hong Kong
Account Email Address Verified     Account Phone Number Verified     Disclaimer     Report Abuse
Page Updated Last on: Sep 21, 2023
Crowder Securities Limited News
Most Viewed
Daily News

Like PRLog?
Click to Share