Roblox (NYSE:RBLX) Releases Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Roblox (NYSE:RBLX) posted its earnings results on Thursday. The company reported ($0.43) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.53) by $0.10, Briefing.com reports. Roblox had a negative return on equity of 770.71% and a negative net margin of 41.15%. The firm had revenue of $923.76 million during the quarter, compared to analysts’ expectations of $918.85 million. During the same period in the previous year, the firm earned ($0.44) earnings per share. The company’s revenue was up 19.4% on a year-over-year basis. Roblox updated its FY 2024 guidance to EPS and its Q2 2024 guidance to EPS.

Roblox Stock Up 2.8 %

NYSE:RBLX traded up $0.86 on Friday, hitting $31.28. The stock had a trading volume of 15,942,641 shares, compared to its average volume of 8,182,505. The stock has a market cap of $19.76 billion, a P/E ratio of -16.82 and a beta of 1.63. The company has a debt-to-equity ratio of 14.64, a quick ratio of 1.07 and a current ratio of 1.07. The firm’s fifty day simple moving average is $37.81 and its two-hundred day simple moving average is $39.39. Roblox has a 1 year low of $24.88 and a 1 year high of $47.20.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on RBLX shares. Moffett Nathanson raised shares of Roblox from a “sell” rating to a “neutral” rating and reduced their price objective for the stock from $31.00 to $26.00 in a research report on Friday. The Goldman Sachs Group raised shares of Roblox from a “sell” rating to a “neutral” rating and lifted their target price for the stock from $35.00 to $48.00 in a research note on Thursday, February 8th. Roth Mkm reaffirmed a “buy” rating and issued a $55.00 price objective on shares of Roblox in a research note on Wednesday, May 1st. Piper Sandler reissued an “overweight” rating and set a $40.00 price target (down from $56.00) on shares of Roblox in a research report on Friday. Finally, Morgan Stanley lowered their price target on shares of Roblox from $42.00 to $35.00 and set an “equal weight” rating on the stock in a report on Friday. Five analysts have rated the stock with a hold rating, seventeen have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $43.76.

Insiders Place Their Bets

In other Roblox news, insider Mark Reinstra sold 12,531 shares of Roblox stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $40.75, for a total value of $510,638.25. Following the sale, the insider now owns 249,779 shares of the company’s stock, valued at $10,178,494.25. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other news, insider Mark Reinstra sold 12,531 shares of the stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $40.75, for a total transaction of $510,638.25. Following the completion of the transaction, the insider now owns 249,779 shares in the company, valued at approximately $10,178,494.25. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Amy Marie Rawlings sold 3,777 shares of the company’s stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $40.64, for a total transaction of $153,497.28. Following the sale, the chief accounting officer now directly owns 96,125 shares in the company, valued at $3,906,520. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 512,374 shares of company stock valued at $20,809,338. Insiders own 22.15% of the company’s stock.

Roblox Company Profile

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.