Wall Street Expects $1.43 Billion in Robinhood Earnings

Rolling out new financial instruments and international markets to expand its retail investor base, Robinhood Markets (HOOD) is preparing to report its 3rd-quarter earnings after the market close on Tuesday, October 27. The Wall Street consensus expects the company to post a net profit of $0.55 per share and revenue of $1.43 billion for the period.

What are Wall Street's profit and revenue expectations for Robinhood?

To diversify its revenue base beyond its current lines of business, the company announced a new product range covering AI-powered Robinhood Agents, perpetual futures, earnings contracts, and weekend equity trading. In addition, with the US Securities and Exchange Commission (SEC) approving the listing of binary options based on company performance metrics at Cboe Global Markets, Robinhood is preparing to become the first retail broker for these products. In line with its global expansion strategy, the platform has also obtained the necessary permits to bring its Dubai-based investment service to the Middle East market in 2027.

Which new products is Robinhood targeting for growth?

The platform's current business volume includes 13 different business lines with annualized revenue exceeding $100 million. Seeking Alpha analyst Steven Fiorillo stated that despite strong revenue growth and record net deposit inflows, the stock trading at a multiple of 31.2 times 2027 earnings estimates carries a 48% premium compared to peers and that the valuation is stretched. In contrast, Evercore ISI analysts set a price target of $130 for the stock, emphasizing that the expanding product range has the potential to grow the deposit base by over 20%.

On the last trading day before earnings, Robinhood Markets shares fell 1.92% to trade at $93.25. Down 18.38% year-to-date, the company's shares lagged the S&P 500 index, which gained 11.37% over the same period. For the company, which beat profit expectations in 6 and revenue expectations in 5 of the 8 quarters reported in the last 2 years, analysts made 14 upward profit and 13 upward revenue revisions in the last 3 months.

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