Roku(US:ROKU) ZACKSยท2025-02-18 21:55Core Insights - Roku and Twilio have been among the top-performing stocks in early 2024, with Roku up over 30% and Twilio up 14% year to date [1] Roku's Q4 Review - Roku's Q4 sales increased by 22% year over year to $1.2 billion, surpassing estimates of $1.14 billion [3] - The company reported a narrower-than-expected loss of -$0.24 per share, compared to an expected loss of -$0.44, marking a significant improvement from an adjusted loss of -$0.55 in Q4 2023 [4] - Roku has exceeded earnings expectations for five consecutive quarters, edging closer to profitability since its IPO in 2017 [4] Twilio's Q4 Review - Twilio's Q4 sales rose by 11% year over year to $1.19 billion, slightly exceeding sales estimates [6] - The reported EPS of $1.00 missed expectations of $1.02 but increased by 16% from $0.86 in the previous quarter [7] - Twilio has beaten earnings expectations in three of the last four quarters, with an average EPS surprise of 17.79% [7] Full-Year Results - Roku's total sales for fiscal 2024 increased by 18% to $4.11 billion, with annual losses narrowing to -$0.89 per share from -$5.02 in 2023 [8] - Twilio's total sales rose by 7% to $4.45 billion, with annual earnings increasing by 50% to $3.67 per share from $2.45 in 2023 [9] Outlook for Roku - Roku expects a 12% increase in total sales for FY25, projecting $4.61 billion, with further growth of 13% in FY26 to $5.22 billion [10] - The company aims for positive operating margins by 2026, with projected EPS of $0.10 for FY26 [11] Outlook for Twilio - Twilio anticipates Q1 sales between $1.13 billion and $1.14 billion, reflecting 8% to 9% growth, with Q1 EPS expected in the range of $0.88 to $0.93 [12] - For FY25, Twilio forecasts total sales growth of 7% to $4.78 billion, with EPS projected to expand by 18% to $4.33 [13] Bottom Line - Both Roku and Twilio are currently rated as Zacks Rank 1 (Strong Buy), with positive earnings estimate revisions for FY26 potentially extending their stock rallies [14]