Robinhood (HOOD) will report its quarterly results after the close on Thursday. These are online brokerage app’s top- and bottom-line consensus figures expected by Wall Street analysts:
Adjusted earnings (loss) per share: – 36c
Revenue $352.93 million
Robinhood’s stock has been touching new 52-week lows recently. The company missed revenue estimates in the third and fourth quarter of last year, in part due to lower trading activity.
Crypto activity started declining after seeing record highs in the second quarter of 2021. Seasonal headwinds also contributed to fewer new funded accounts in the second half of last year. The zero-commission-per-trade industry has become increasingly competitive. In response, Robinhood is laser focused on its new Wallets program.
The Menlo Park, California-based company recently announced it was laying off 9% of fits full-time workforce after a hiring spree in 2021.
“They went public at the most craziest, exuberant time for trading,” Mizuho senior financial technology analyst Dan Dolev told Yahoo Finance Live on Wednesday.
“They definitely over-hired. They need to trim their employees,” said Dolev. “It’s very harsh but it doesn’t say anything about the fundamental value proposition of the business.”
Dolev currently has a Buy rating on the stock, with a $19 price target.
Robinhood’s stock has been touching new 52-week lows recently.
The stock has 7 Buy, 8 Hold, and 3 Sell recommendations from Wall Street analysts.
Robinhood went public last July, pricing its IPO price at $38/share. It reached a 52-week high of $85/share last year.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
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