Friday’s Headlines: Roku Reports Quarterly Profit
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Wix (WIX) +13.9%
Twilio (TWLO) +7.7%
Chuy's (CHUY) +6.0%
Datadog (DDOG) +3.2%
Coupa Software (COUP) +2.8%
Moving Down ⬇️
Boston Beer Co. (SAM) -8.0%
Redfin (RDFN) -4.9%
Lemonade (LMND) -4.6%
Zillow (Z) -4.5%
2U (TWOU) -4.3%
1. The age-old adage that a ‘rising tide lift all boats’ is proving true for Roku (ROKU) amid the ongoing streaming wars. The brand-agnostic streaming platform reported an earnings beat with revenue of $649.9 million and earnings per share (EPS) of $0.49, versus an expected loss of $0.06 per share. For the full year, Roku reported that its losses narrowed to $17.5 million, or $0.14 cents per share, with revenue topping $1.78 billion and total active accounts reaching 51.2 million. Roku outright attributed its growth to the rising number of content publishers who are pivoting to over-the-top (OTT) streaming services, including HBO, Disney, and now Paramount. Read the official press release here.
2. Shares in Facebook (FB) fell on Thursday after the company ‘unfriended’ the land down under. Following draft legislation that would force Facebook to pay Australian news outlets for displaying and linking to their content, Zuckerberg pulled the plug and blocked hundreds of pages from its platform. Unfortunately, there was some collateral damage as charities, small businesses, public services, and Facebook’s own page were accidentally blocked in what could be the company’s worst PR nightmare since the 2018 Cambridge Analytica scandal. You can read a full write-up on the story by our team here.
3. Apple’s (AAPL) relatively disappointing February doesn’t seem to be improving after the company’s two largest investors trimmed their positions. The stock hit its lowest point in a month after Warren Buffett’s Berkshire Hathaway (BRK.B) disclosed on Thursday that it had sold more than 57 million Apple shares in Q4 2020, worth approximately $7.4 billion. Meanwhile, Apple’s largest shareholder, The Vanguard Group Inc., trimmed its stake in Apple by 25.51 million shares during the same period. The iPhone maker’s share price has fallen close to 10% in the past month but remains marginally up 0.2% year-to-date (YTD). Read about why Apple investors shouldn’t be worried though here.
Some more earnings from last night:
Arista Networks (ANET)
Cloud computing remains king as Arista Networks topped analyst estimates to report Q4 revenue of $648.5 million, as well as an impressive profit of $183 million, or $2.31 per share. The company is yet another cloud firm that is benefiting from the ongoing acceleration in the sector caused by the COVID-19 pandemic and expects Q1 sales to come in at between $630 million and $650 million. Get the full webcast here.
Planet Fitness (PLNT)
You didn’t need to be Nostradamus to predict that a gym chain would struggle during a pandemic, with Planet Fitness reporting a 30% YoY decline in revenue to $133.8 million and EPS of $0.17 — analysts expected $0.22 per share. Due to continued uncertainty surrounding COVID-19, the company did not provide any guidance for 2021, but it seems unlikely that it will be hitting all-time highs any time soon. Read the official press release here.
Texas Roadhouse (TXRH)
The restaurant game is a tough gig right now, and one business feeling that pinch is Texas Roadhouse, which saw revenue fall 12% in Q4 to $638 million while EPS fell to $0.28 from $0.49 a year ago. CEO Kent Taylor did not mince his words, stating: “This past year has been without question the most challenging I’ve ever experienced in the restaurant business.” Read the full press release here.
The Trade Desk (TTD)
Despite a slowdown in advertising spend around the world, The Trade Desk managed to smash expectations with Q4 revenue of $319 million, up 48% YoY, while net income jumped almost 200% to $151.9 million. The company cited successful partnerships with the likes of TikTok and Samba TV for its continued growth, as they allowed further expansion across Asia and North America. Read the official press release here.
There is 1 company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.