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On Thursday, Keefe, Bruyette & Woods maintained their Market Perform rating on Robinhood Markets (NASDAQ:HOOD) with a steady price target of $38.00. The firm’s analyst, Kyle Voigt, highlighted that Robinhood’s adjusted earnings per share (EPS) of $0.54 surpassed both Keefe, Bruyette & Woods’ estimate by $0.05 and the consensus by $0.12, after accounting for non-core one-time items amounting to $0.47. The positive results were attributed to a combination of higher-than-expected revenues and lower stock compensation expenses.
Voigt noted that the earnings beat was primarily driven by a $0.04 increase in revenues and a $0.01 decrease in stock compensation. Robinhood’s transaction revenues, which totaled $710 million, exceeded Keefe, Bruyette & Woods’ projection of $668 million and the consensus estimate of $622 million. This increase was fueled by robust options revenues, which came in at $240 million compared to the $215 million expected by Keefe, Bruyette & Woods and the $208 million consensus.
Additionally, cryptocurrency transaction revenues were a standout, reaching $373 million. This figure not only surpassed Keefe, Bruyette & Woods’ estimate of $365 million but also significantly outperformed the consensus estimate of $341 million. The analyst had previously indicated in a note on February 2nd that Robinhood’s transaction revenues were likely to be strong, based on the company’s Rule 606 report.
Looking ahead, Robinhood’s operating expense guidance for 2025 was reported to be roughly in line with Keefe, Bruyette & Woods’ expectations. The firm’s assessment following Robinhood’s earnings suggests that the company’s financial performance is tracking closely with their projections, particularly in the areas of options and cryptocurrency revenues.
In other recent news, Robinhood Markets has seen several financial firms revise their stock targets on the back of strong fourth-quarter results. Citi analyst Christopher Allen raised the price target to $60, citing higher-than-expected revenue and adjusted operating expenses. JMP Securities followed suit, increasing their target to $77, while applauding Robinhood’s fiscal responsibility and potential for further innovation. Barclays (LON:BARC) and KeyBanc Capital Markets also revised their targets upwards to $76 and $75 respectively, emphasizing the company’s robust business momentum and operational leverage.
In addition to these financial revisions, Robinhood has been making strides in expanding its offerings. The company recently launched options trading for UK customers, a development that marks an expansion into a market with growing interest in alternatives to traditional stock trading.
These are just a few of the recent developments surrounding Robinhood Markets. As the company continues to perform well in the financial sector and innovate in its offerings, investors and analysts alike will be closely following its progress.
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