By Christiana Sciaudone
Investing.com -- Analysts must be kicking themselves after Roku (NASDAQ:ROKU) turned a sweet profit after they forecast a loss.
Roku rose 16% on a profit of 54 cents, its best on record, on sales of $574 million, up 79% year-on-year. Analysts had expected a loss per share of 14 cents on revenue of $492 million, according to data compiled by Investing.com.
The company continues to benefit from the boom in streaming amid the global pandemic. Second quarter sales are expected to reach $615 million at the midpoint, up 73% from a year earlier, but the second half will bring tougher comparisons, Roku said in a statement. Despite that, the company expects net adds of both active accounts and streaming hours to be above pre-Covid-19 levels and strong engagement, with streaming hours per account higher in 2021 than in 2020.
Roku is down about 30% after reaching a record in February alongside other pandemic darlings that have seen their fortunes wane with vaccinations spreading and viewers turning off their devices to enjoy the great outdoors.
Loop Capital upgraded the stock to buy from hold citing fundamentals that are stronger than anticipated, StreetInsider reported.