Eos Energy stock falls after Fuzzy Panda issues short report
Investing.com -- Roku Inc (NASDAQ:ROKU) reported its first quarterly operating profit since 2021 and beat market estimates on Thursday, but shares tumbled 6% in premarket trading Friday after the company projected slower revenue growth for the current quarter. However, the company’s stock has since pared loses, now sitting 10.8% in the green as of 11:25 AM ET Friday.
The streaming platform posted third-quarter adjusted earnings per share of $0.16, exceeding analyst estimates of $0.09. Revenue reached $1.21 billion, matching consensus projections and representing a 14% increase YoY.
Platform revenue, which includes advertising and content distribution, grew 17% YoY to $1.065 billion, while device revenue fell 5% YoY to $146 million. Excluding the effects of ASC606, political revenues, and the Frndly acquisition, core platform revenue rose about 20% in the third quarter.
" Roku is delivering modest sequential acceleration in core Platform revenue growth in 2H25, which is benefiting from stronger streaming subscription uptake," Morgan Stanley analysts led by Thomas Yeh commented.
"We acknowledge both ad/SSD tailwinds into ’26, but we see competitive risks not priced in shares," they wrote.
The stock rebounded as investors examined Roku’s achievement of positive operating income ahead of schedule and raising its full-year outlook. The company’s device segment posted a gross margin of -16%, reflecting ongoing challenges in hardware profitability.
"We delivered strong Q3 results, achieving positive operating income ahead of schedule and for the first time since 2021," said Roku in its shareholder letter, highlighting that The Roku Channel remained the #2 app on its platform by engagement in the U.S.
For the fourth quarter, Roku forecasts revenue of approximately $1.35 billion, above the analyst consensus of $1.324 billion. It expects 12% revenue growth for the current quarter, slowing from 14% in the third quarter and 15% in the second.
Platform revenue is also expected to slow to 15% in the fourth quarter.
The company raised its full-year 2025 revenue guidance to $4.69 billion, surpassing analyst expectations of $4.661 billion.
Wolfe Research analysts commented that Roku’s "underlying growth is robust and should stay that way."
Streaming hours on the platform reached 36.5 billion, increasing by 4.5 billion hours YoY. The company maintained its position as the #1 selling TV operating system in the U.S., Canada, and Mexico, with its U.S. market share exceeding that of the second and third-place competitors combined.
Roku also announced a $50 million share repurchase as part of its previously announced $400 million stock buyback program, emphasizing its "commitment to delivering long-term shareholder value by growing free cash flow per share."
(Luke Juricic contributed to this report.)