TLDR
- Robinhood (HOOD) reports Q3 results Tuesday, October 27, with analysts expecting EPS of $0.56 on $1.44 billion in revenue.
- Options traders expect a 10.2% move either way, from the $95.07 October 23 close.
- The stock has fallen after each of its last four earnings reports, by 3.61% to 13.24%.
- HOOD is down 18.4% over the past month and 16% this year.
- TipRanks shows a Strong Buy consensus and a $139 average target, which implies 46% upside.
Robinhood (HOOD) stock closed at $95.07 on October 23 and slipped about 1% in the latest session. The company reports third-quarter results Tuesday, October 27.
Options traders expect a 10.2% move in either direction after the report. That is roughly $9.70 from the October 23 close.
The options-implied range runs from $85.37 to $104.77. Analysts expect EPS of $0.56 on revenue of $1.44 billion.
A year ago, EPS was $0.61. Revenue is forecast to rise 13% from last year.
The stock has had a rough month. 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% options traders are pricing in now.
Last quarter, revenue came in at $1.31 billion, up 32.3% from a year earlier. Users reached 28.4 million, up 7.2%.
Growth is expected to slow this quarter. Analysts see revenue rising about 12% to 13%, compared with a 100% jump in the same quarter last year.
Robinhood has also missed revenue estimates several times in the past two years. Analysts have mostly held their estimates steady over the last 30 days.
Market Pressure and Analyst Views
Brokerage stocks have struggled in a broader sell-off. Rising oil prices and heavy foreign investor outflows added to the pressure, with Brent crude near $114 to $115 a barrel.
The Dow fell 1.23% to 52,215.16 on Friday, and the S&P 500 lost 0.52%. Meta and Netflix also traded lower after their reports, down 7.5% and 5.3%.
Wells Fargoās Daniel Welden cut his price target to $120 from $125 and kept a Hold rating. Rosenblattās Chris Brendler started coverage with a Buy and a $135 target, which implies 42% upside.
Brendler said changes to Pattern Day Trading rules could help some of Robinhoodās most valuable customers. Truistās David Smith raised his target to $134 from $130 and kept a Buy rating.
TipRanks shows a Strong Buy consensus, with 20 Buys and three Holds over the last three months. The average target of $139 implies 46% upside.
StockStory lists an average analyst target of $134.90. The stock was at $94.88 when it published its preview.
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