Roblox Corp (RBLX)

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

• Here is a look at what analysts expect to hear from two companies reporting quarterly earnings early on Wednesday.

Roblox

Interactive entertainment platform Roblox Corp. (NYSE: RBLX) has seen its stock price tumble by about around 23% over the past 12 months. That loss would be even worse had the shares not added about 30% so far this year. The less-good news is that the share price has fallen by about 19% in just over two weeks.

Roblox’s stock price is tied to the company’s performance. Analysts had raised hopes after the company announced first-quarter results. The company has provided little or no information during the second quarter, perhaps leading investors to believe that no news is not good news.

Of 28 analysts covering the stock, 15 have a Buy or Strong Buy rating and seven more rate it at Hold. At a price of around $37.00 a share, the implied gain based on a median price target of $45.00 is 21.6%. At the high target of $65.00, the upside potential is about 75.7%.

The consensus first-quarter revenue estimate is $777.97 million, which would be up 0.5% sequentially and by 21.6% year over year. Analysts also expect Roblox to post a loss per share of $0.44, equal to the prior quarter’s loss and worse than the year-ago quarter’s loss of $0.30. For the full fiscal year, the company is expected to post a loss of $1.83 per share, compared to last year’s loss of $1.55 per share. Revenue is forecast at $3.42 billion, up 19.2%.

Roblox is not expected to post a profit in 2023, 2024 or 2025. For those three years, the company’s enterprise value to sales multiple is 6.4, 5.5 and 4.9, respectively. The stock’s 52-week trading range is $25.32 to $53.88, and the company does not pay a dividend. The total shareholder return for the past year was negative 23.29%.

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