Shares of Robinhood (HOOD) gained in after-hours trading after the financial services platform reported earnings for its fourth quarter of Fiscal Year 2024. Earnings per share came in at $1.01, which smashed analysts’ consensus estimate of $0.41 per share.
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Furthermore, sales increased by 115% year-over-year, with revenue hitting $1.01 billion. This beat analysts’ expectations of $934.9 million. This jump was primarily driven by a growth in interest-earning assets and an increase in transactions. Specifically, the recent hype around cryptocurrencies like Bitcoin brought in $358 million for the company, a 700% increase compared to Q4 2023.
In addition, the number of Funded Customers increased by 8% year-over-year to 25.2 million, with average revenue per user jumping 102% to $164. 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 more favorable crypto regulations, along with market share growth and new business lines, as catalysts for the company’s strong EPS growth.
Is HOOD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on HOOD stock based on 12 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 379% rally in its share price over the past year, the average HOOD price target of $53 per share implies 5.61% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
