Robinhood's Q3 report is out, adjusted EPS is 0.60, GAAP EPS is only 0.51
Robinhood's Q3 GAAP diluted EPS is $0.51, Wall Street estimated 0.555, so it missed. The company introduced a new adjusted EPS this quarter, which is 0.60. Revenue was $1.42 billion, up 12% year-over-year, slightly below the expected $1.44 billion.
The shortfall was explained in the press release. There was an unrealized loss of $67 million in net profit, or $0.07 per share, mainly due to RVI being accounted for at stock price. This loss basically did not offset taxes, pushing this quarter's tax rate to about 23.8%. Excluding it, the rough tax rate is 20.6%, whereas the previous two quarters were below 20%.
October started off well. As of October 27, net deposits have exceeded $13 billion, of which $6 billion came from the Dell family to Trump Accounts. The full-year guidance upper limit for adjusted expenses plus stock-based compensation was lowered by another $25 million.
After hours, the stock price dropped from the close of 94.56 to about 87 around 6 PM Eastern Time, a drop of about 8%. OKEx perpetual contracts fell from 94.79 at 4 PM Eastern Time to 87.32 at 6:14 AM Beijing Time, down 7.9%.
No was right again.
Alright, the above is my personal opinion and not investment advice
