Netflix
FILE PHOTO: The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018.
(Photo: REUTERS/Lucy Nicholson/File Photo)

Roku Inc has lost 8 cents/share in the last 6 months, narrower than expectations by Zacks Consensus which estimated the company to shed 22 cents/share, as the company becomes more anxious about the onslaught of on-demand video streaming.

The above figures are in contrast to break-even earnings per share from the company's previous period, which are adjusted for non-recurring items. Revenues were up almost 60% from the last three months to $250 million which breached the consensus target of $225 million.

Roku's report for the last quarter shows an earnings surprise of 64%. Just this May, it was projected that the digital media player company would report a loss of $0.24/share when it actually registered a loss of $0.09, delivering a 62.5% surprise. Roku has beat consensus earnings per share expectations four times.

The publicly-traded company headquartered in San Jose, California's active accounts rallied nearly 40% year-on-year to 30.6 million. Streaming hours were up 73% (YOY) to over 9 billion. In addition, average revenue per user climbed 28% to $21.07.

The sustainability of the Roku's immediate price shift as per its recently-reported figures as well as future earnings projections will largely hinge on the company's commentary on the earnings call. Shares of Roku have increased by around 221% since the start of 2019, compared to the S&P 500's advance of 16%.

Relatively, a surge in the forecast value of online content distribution deals has been a major factor in pushing its top-line momentum. Also, solid improvement in advertising was sustained as monetized video ads nearly tripled year-on-year.

While the American digital media firm has outperformed the market so far in the latest quarter, the question that comes to analysts' minds is: what's next for the company?

Answers to this question will not be easy, but one credible basis that can help traders address this is Roku's earnings forecast. Not only does it include the latest consensus earnings projections for the next quarter, but also how these estimates have changed in the last few months.

Roku, which started developing set-top streaming devices more than 10 years ago to stream Netflix movies, currently has numerous digital media partners. The software that Roku licenses to smart-television makers recently beat Samsung's as the country's hottest-selling smart-TV device, according to research.

Meanwhile, the company believes that it has reached 1 of 5 American homes compared to other multi-channel online media service companies. For instance, in the first quarter, Roku had launched premium subscriptions to The Roku Channel. Its clients currently have access to over 40 premium online channels, including SHOWTIME, EPIX, HBO, and STARZ.