Roku plummets following a lackluster first-quarter 2018 forecast (ROKU)

pulse

February 22, 2018 2:53 PM

Roku reported fourth-quarter 2017 earnings results that beat expectations though the company forecasted bleaker sales for the first quarter of 2018.

The company's stock plunged after it gave weaker-than-expected first-quarter 2018 guidance.

Shares of Roku dived more than 20% Thursday morning after the company gave weaker-than-expected sales guidance for the first quarter of 2018.

The maker of connected TV boxes and software forecast it will bring in $120 million to $130 million in revenue next quarter, below Wall Street's estimates of $132 million. The company's quarterly outlook takes into account a new revenue recognition standard, which may impact its figures, the company said in its earnings release.

Still, the company beat Wall Street estimates, reporting a healthy growth in subscribers and streaming hours over the quarter. It posted adjusted earnings per share of $0.06 on revenues of $188.3 million, versus analysts' estimates of -$0.10 and $182.5 million.

Roku's stock has more than tripled since the company went public last September.

pulse