Shares of Robinhood (NASDAQ rose on Thursday at the back of its latest earnings release, in which it beat earnings and revenue expectations.
The brokerage reported first-quarter earnings of $0.18 per share, $0.13 better than analysts' estimate of $0.05. per share. Revenue for the quarter came in at $618 million versus the consensus estimate of $543.14 million.
This is how the analysts reacted:
Bank of America lifted is target price for the stock at $14 from $13 per share, maintaining an underperform rating. The bank said: “HOOD posted a better-than-expected record earnings per share of $0.18 (vs. $0.06 BofA+ consensus) driven by a large increase in transaction-based revenue (+31% QoQ), specifically from options and cryptocurrency volumes plus better than expected expense discipline“.
Bernstein maintained his Outperform rating and $30 price target on the stock. The company stated: “Cryptocurrencies are back.” They added: “We continue to believe, on both the buy and sell sides, we still refuse to see what we see: a monster cryptocurrency comeback cycle during 2024-25.”
Piper Sandler maintained her Neutral rating and $18 target on HOOD stock. “HOOD Posts Strong Top and Bottom Line GAAP Earnings. HOOD reported GAAP EPS of $0.18 per share, beating our estimate of $0.08 and consensus of $0.06,” they wrote. “Stronger-than-expected transaction surges (particularly in crypto) drove an 8% ($45 million) increase in our total revenue estimate.”
JMP Securities maintained its Outperform rating and $30 target on the stock. “We expect a greater acceleration of deposits and new clients, with “Improvements in gold supply are also increasingly contributing,” they wrote. “Simply put, we believe Robinhood can continue to deliver stronger-than-appreciated growth and profitability, all of which supports the valuation.”
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Barclays maintained an underweight rating on Robinhood but raised its target for the stock to $18 from $16 per share. “Although we cannot avoid “We question the sustainability of some of these trends, particularly on the cryptocurrency side, but with Robinhood indicating that its deposit matching program could continue for a long time and stock markets looking largely constructive, these trends could continue in the short term”.
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