© Reuters Robinhood (HOOD) soars 12% on surprise fourth-quarter profit and 'likely to achieve' guidance
Robinhood (HOOD) stock soared more than 12% in premarket trading on Wednesday after the stock trading platform reported better-than-expected fourth-quarter profits and sales.
The company's earnings per share (EPS) was $0.03, compared to analysts' estimates of a loss per share of $0.01. Revenue came in at $471 million, also beating the consensus estimate of $456.33 million.
Robinhood's transaction-based revenue rose 7.5% year over year to $200 million, beating estimates of $191.2 million. Crypto-related revenue reached $43 million, exceeding expectations of $37 million.
The company also reported monthly active users of 10.9 million for the quarter, slightly above expectations of 10.83 million.
For fiscal 2024, Robinhood (NASDAQ:) expects total operating expenses to be between $1.85 billion and $1.95 billion, compared to analyst expectations of $1.95 billion.
“Management. Directed to 2024 Consolidated Adjustment. Operating costs range from $1.85 billion to $1.95 billion (up 5% year over year), including $85 million per quarter in SBC,” BofA analysts said. said in a memo.
“Given recent positive signs that management is serious about cost discipline, including the revocation of a $485 million Founders Award and multiple layoffs, we believe our goals are well within reach. “We believe that this is the case,” they commented.
