Shares of video game company Roblox (RBLX) fell in today’s trading as investors await its Q4 earnings results on February 6 before the market opens. Analysts are expecting earnings per share to come in at -$0.45 on revenue of $1.37 billion. This equates to 13.5% and 82.3% year-over-year increases, respectively, according to TipRanks’ data.
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It’s also worth noting that Roblox has beaten earnings estimates for five consecutive quarters, and it looks like the streak is set to continue. At least, that is according to five-star TD Cowen analyst Doug Creutz.
Indeed, he recently noted that Roblox had a strong end to the year, thanks to a popular update called “Dress to Impress” and better-than-expected rankings over Christmas.
After analyzing user data, Creutz estimates that Roblox will report $1.36 billion in bookings, which is at the higher end of the company’s own predictions. As a result, TD Cowen now believes that Roblox will meet or even exceed its quarterly targets. Interestingly, though, the firm still has a Sell rating on Roblox shares with a price target of $35.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 12.88% price move in either direction. This estimate is derived from the $71 strike price, with call options priced at $4.55 and put options at $4.60.
Is RBLX Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RBLX stock based on 17 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 81% rally in its share price over the past year, the average RBLX price target of $62.83 per share implies 12% downside risk.
