Analysts Anticipate Beat on Strong Trading and Cost Cuts

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Analysts Anticipate Beat on Strong Trading and Cost Cuts

BofA Securities Expects Robinhood to Beat Earnings Estimates

BofA Securities analysts are optimistic about Robinhood's upcoming earnings report, anticipating the online broker will surpass expectations when it releases its second-quarter financial results on August 7th.

In a research note released on Wednesday, BofA highlighted several factors contributing to their positive outlook. They pointed to Robinhood's record-high trading volumes and impressive annualized net new asset (NNA) growth as key drivers of near-term revenue. Additionally, BofA believes Robinhood's cost-cutting measures, including headcount reductions, have positioned the company for strong free cash flow conversion and "a powerful earnings growth trajectory going forward."

Analysts expect Robinhood to report earnings of 15 cents per share and quarterly revenue of $621.865 million. Notably, Robinhood has consistently exceeded analysts' EPS expectations in the past five quarters.

Analyst Price Targets and Stock Performance

Looking ahead, Wall Street analysts have an average 12-month price target of $22.53 for Robinhood, with a high target of $30 and a low target of $16. While the stock is currently trading above its average price target, the potential for further upside remains.

It's important to remember that stock prices can fluctuate significantly, and past performance is not always indicative of future results. However, BofA's positive outlook and analysts' price targets suggest that Robinhood could be poised for continued growth in the coming months.