What To Expect From Robinhood’s (HOOD) Q4 Earnings

Financial services company Robinhood (NASDAQ:HOOD) will be reporting earnings tomorrow afternoon. Here’s what you need to know.

Robinhood missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $637 million, up 36.4% year on year. It was a softer quarter for the company, with a slight miss of analysts’ number of funded customers estimates and a miss of analysts’ EBITDA estimates. It reported 24.3 million users, up 4.3% year on year.

Is Robinhood a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Robinhood’s revenue to grow 99.9% year on year to $941.4 million, improving from the 23.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Robinhood has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Robinhood’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 11.8%, meeting analysts’ expectations, and Snap reported revenues up 14.4%, topping estimates by 0.6%. Alphabet traded down 7.2% following the results while Snap was also down 8.6%.

Read our full analysis of Alphabet’s results here and Snap’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 10.4% on average over the last month. Robinhood is up 42.6% during the same time and is heading into earnings with an average analyst price target of $50.88 (compared to the current share price of $56.34).

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