Key Takeaways
- Robinhood Markets shares moved greater in after-hours buying and selling on Wednesday after diluted earnings per share and income materially exceeded expectations.
- The net buying and selling platform mentioned its stellar outcomes had been pushed by greater buying and selling in choices, crypto, and shares.
- CEO Vlad Tenev known as tokenization the trade’s “largest innovation” of the final decade.
Robinhood Markets (HOOD) reported a blowout earnings beat
The buying and selling platform, which caters to retail buyers, in its newest quarter benefitted from a return of speculative investing and meme-stock mania, with a leap in transaction-based income throughout classes. 12 months-over-year positive aspects had been pushed by greater buying and selling in choices, crypto, in addition to shares.
Robinhood’s second-quarter earnings materially exceeded expectations. Its reported diluted earnings per share of $0.42, doubling year-over-year. Income got here in at $989 million. Analysts surveyed by Seen Alpha anticipated $0.30 in diluted EPS and $920 million in income.
Robinhood CFO Jason Warnick mentioned on a convention name that the buying and selling platform had a robust begin to the third quarter, with July fairness and choices buying and selling volumes setting month-to-month information. Crypto volumes at each Robinhood and its European crypto alternate Bitstamp are at six-month highs, he mentioned.
The inventory was comparatively quiet in after-hours buying and selling, just lately rising about 1% after climbing a bit lower than 3% within the common session. The inventory has been on an upward tear this 12 months because it leaned into its crypto enterprise and rolled out new merchandise together with blockchain-based inventory tokens in Europe and staking for ethereum (ETHUSD) and solana (SOLUSD); the shares are up nearly 170% year-to-date.
CEO Vlad Tenev in an announcement mentioned Robinhood’s “relentless product velocity” drove its robust second-quarter outcomes and mentioned tokenization was “the most important innovation” the trade has seen in years.
The corporate stands to profit from relaxed day-trading guidelines if the Monetary Trade Regulatory Authority heeds the brokerage’s feedback that pointers had been extra dangerous than useful to buyers, and a difficult supply of buyer complaints.
Robinhood raised its full-year outlook for adjusted working bills barely to account for its acquisition of Bitstamp, which closed within the second quarter.
This text has been up to date because it was first revealed so as to add new info and replace share-price motion.
