Shares of Robinhood (HOOD) gained in after-hours trading after the financial services platform reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.21, which beat analysts’ consensus estimate of $0.16 per share.
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Sales increased by 40.3% year-over-year, with revenue hitting $682 million. This beat analysts’ expectations of $642.6 million. This jump was primarily driven by a growth in interest-earning assets, higher short-term rates, and an increase in transactions. Specifically, the recent hype around cryptocurrencies like Bitcoin (BTC-USD) brought in $81 million for the company, a 161% increase compared to Q2 2023.
In addition, the number of monthly active users increased by 9% year-over-year to 11.8 million, with average revenue per user jumping 35% to $113. Interestingly, according to TipRanks’ “Bulls Say, Bears Say” tool pictured below, it seems like the bulls were expecting a solid financial performance. Indeed, they pointed to increases in net deposits and accounts, along with operating leverage, as catalysts for the company’s EPS strong growth.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on HOOD stock based on six Buys, six Holds, and three Sells assigned in the past three months, as indicated by the graphic below. After a 58% rally in its share price over the past year, the average HOOD price target of $22.79 per share implies 30.53% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
