TLDR
- Robinhood (HOOD) reports Q3 results Tuesday, October 27, with analysts expecting $0.56 EPS on $1.44 billion in revenue.
- Options traders expect a 10.2% move either way, or about $9.70 per share, from the $95.07 October 23 close.
- The stock has fallen after each of its last four earnings reports, with drops of 3.61% to 13.24%.
- HOOD is down 18.4% over the past month and 16% this year as brokerage stocks struggle in a broader sell-off.
- TipRanks shows a Strong Buy consensus with a $139 average target, implying 46% upside.
Robinhood (HOOD) reports third-quarter results Tuesday, October 27. The stock closed at $95.07 on October 23 and was down about 1% in the latest session.
Options traders expect a 10.2% move in either direction after the report. That is about $9.70 per share, which puts the implied range at $85.37 to $104.77.
Analysts expect earnings of $0.56 per share on revenue of $1.44 billion. A year ago, EPS was $0.61, and revenue is forecast to rise 13%.
The stock has been under pressure. It is down 18.4% over the past month and 16% so far this year.
What the Earnings History Shows
Robinhood has fallen after each of its last four earnings reports. The drops ranged from 3.61% to 13.24%.
In July, EPS of $0.62 beat the $0.43 estimate. The stock still fell 3.61%.
The average absolute move over those four reports was 9.14%. That is a bit below the 10.2% the options market is pricing in now.
Last quarter, revenue came in at $1.31 billion, up 32.3% from a year earlier. The company reported 28.4 million users, up 7.2%.
This quarter, the market expects revenue growth to slow to between 12% and 13%. The same quarter last year saw a 100% jump, and Robinhood has missed revenue estimates several times in the past two years.
Market Pressure and Analyst Views
Brokerage stocks have struggled in a broader market sell-off. Rising oil prices and heavy foreign institutional outflows added to the pressure, with Brent crude near $114 to $115 a barrel.
Wall Street ended Friday lower. The Dow fell 1.23% to 52,215.16, and the S&P 500 slipped 0.52%.
Wells Fargo’s Daniel Welden cut his price target to $120 from $125 and kept a Hold rating. He updated his estimates for trading volume and assets under management.
Rosenblatt’s Chris Brendler started coverage with a Buy rating and a $135 target, implying 42% upside. He pointed to possible changes in Pattern Day Trading rules as a plus for some of Robinhood’s most valuable customers.
Truist’s David Smith raised his target to $134 from $130 and kept a Buy rating. He sees more long-term value in self-directed platforms than in advisor-led firms.
TipRanks lists a Strong Buy consensus, based on 20 Buy ratings and three Holds from the last three months. The average target of $139 implies 46% upside.
StockStory puts the average analyst target at $134.90, compared with a current stock price of $94.88.
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