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Robinhood (HOOD) Reports Earnings Tomorrow: What To Expect

StockStory - Tue May 7, 2:05AM CDT

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Financial services company Robinhood (NASDAQ:HOOD) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Robinhood beat analysts' revenue expectations by 4% last quarter, reporting revenues of $471 million, up 23.9% year on year. It was a decent quarter for the company, with solid revenue growth. It reported 23.4 million users, up 1.7% 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 25.8% year on year to $555 million, slowing from the 47.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Robinhood Total Revenue

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 five times over the last two years.

Looking at Robinhood's peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 36%, beating analysts' expectations by 12.1%, and Shutterstock reported flat revenue, topping estimates by 2.8%. MercadoLibre traded up 8.2% following the results while Shutterstock was down 7.5%.

Read our full analysis of MercadoLibre's results here and Shutterstock's results here.

Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. Robinhood is down 4.1% during the same time and is heading into earnings with an average analyst price target of $19 (compared to the current share price of $17.8).

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