Roblox Corp (RBLX)

[DiscoverGold]

Earnings Preview: Roblox Corp. (NYSE: RBLX)
By: 24/7 Wall St. | May 8, 2023

• The following four companies are scheduled to report quarterly earnings first thing Wednesday morning.

Roblox

Interactive entertainment platform Roblox Corp. (NYSE: RBLX) has seen its stock price rise by about 18.6% over the past 12 months, thanks to a year-to-date gain of around 18.5%. Then Roblox reported preliminary March metrics that included a drop of 1.7% in daily active users to 66.2 million, still higher than last year’s average of 65 million. The March numbers may have been okay, but that was not good enough. Maybe Wednesday’s earnings report will juice the shares. But Roblox needs to show revenue growth and a solid outlook for more because the company still pursues growth rather than profitability.

Of 27 analysts covering the stock, 13 have a Buy or Strong Buy rating and eight more rate it at Hold. At a price of around $36.00 a share, the implied gain based on a median price target of $45.00 is 20%. At the high target of $65.00, the upside potential is about 80%.

The consensus first-quarter revenue estimate is $766.02 million, down 14.8% sequentially but up 22.4% year over year. Analysts also expect Roblox to post a loss per share of $0.40, compared to the prior quarter’s loss of $0.48 per share and the year-ago quarter’s loss of $0.27. For the full fiscal year, the company is expected to post a loss of $1.72 per share, compared to last year’s loss of $1.55 per share. Revenue is forecast at $3.37 billion, up 17.3%.

Roblox is not expected to post a profit in 2023, 2024 or 2025. For 2023, 2024 and 2025, the company’s enterprise value to sales multiple is 6.1, 5.3 and 4.7, respectively. The stock’s 52-week range is $21.65 to $53.88, and the company does not pay a dividend. The total shareholder return for the past year was 29.79%.

Read Full Story »»»

DiscoverGold