Roku plummets following a lacklustre first-quarter 2018 forecast

  • Roku reported fourth-quarter 2017 earnings on Wednesday that slightly beat Wall Street estimates.
  • The company’s stock plunged after it gave weaker-than-expected first-quarter 2018 guidance.
  • Watch Roku’s stock move in real time.

Shares of Roku dived more than 20% Thursday morning after the company gave weaker-than-expected sales guidance for the first quarter of 2018.

The maker of connected TV boxes and software forecast it will bring in $US120 million to $US130 million in revenue next quarter, below Wall Street’s estimates of $US132 million. The company’s quarterly outlook takes into account a new revenue recognition standard, which may impact its figures, the company said in its earnings release.

Still, the company beat Wall Street estimates, reporting a healthy growth in subscribers and streaming hours over the quarter. It posted adjusted earnings per share of $US0.06 on revenues of $US188.3 million, versus analysts’ estimates of -$US0.10 and $US182.5 million.

Roku’s stock has more than tripled since the company went public last September.

Roku’s stock was trading at $US40.39 per share, and was down 23.18% for the year.

Read more about how Amazon has easily outpaced the stock market in the past few months.

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