What's In Store For Roblox In Q3 Earnings? Analyst Sees Path For Adj. EBITDA Margin Improvement
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst Drew E. Crum has reiterated a Buy rating on Roblox Corporation (RBLX) with a price target of $41. The company is set to report its Q3 2023 financial results on November 8, 2023. Despite losing nearly 20% of its market cap since Q2 results, the analyst sees potential catalysts in Q3 earnings and an upcoming investor day. Crum expects a 17% YoY increase in Q3 revenue to $824 million, with higher DAUs and lower monetization. The analyst also predicts an AEBITDA margin of 4.8%, which would be the lowest for Roblox as a public company, but anticipates improvement going forward.
October 24, 2023 | 6:21 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Roblox Corporation (RBLX) is expected to report a 17% YoY increase in Q3 revenue to $824 million, according to Stifel analyst Drew E. Crum. Despite a recent drop in market cap, the upcoming Q3 earnings and investor day are seen as potential catalysts for the company. The analyst also predicts an AEBITDA margin of 4.8%, which would be the lowest for Roblox as a public company, but anticipates improvement going forward.
The news is directly related to Roblox Corporation and its upcoming Q3 earnings. The analyst's positive outlook, despite a recent drop in market cap, could potentially influence investor sentiment and drive the stock price up in the short term. The anticipation of an improvement in AEBITDA margin going forward also adds to the positive impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100