Robinhood Markets, Inc. (HOOD) is set to report third-quarter results on Tuesday, October 27, and the options market is bracing for a sizable swing in the shares. The stock closed at $95.07 on October 23 and slipped about 1% in the latest session ahead of the print, as brokerage names remain under pressure in a broader market sell-off. Here is a look at the key numbers and expectations heading into the report.

Options Market Points to a Wide Post-Earnings Range

Traders are pricing in a 10.2% move in either direction after the report, roughly $9.70 per share from the $95.07 close. That implies a range of $85.37 to $104.77.

Analysts expect earnings of $0.56 per share on revenue of $1.44 billion. A year ago, Robinhood posted EPS of $0.61, so the consensus implies a year-over-year dip in per-share earnings even as revenue is forecast to rise 13% — a marked slowdown from the 32.3% growth reported last quarter.

The stock has been under sustained pressure. It is down 18.4% over the past month and 16% so far this year.

What the Earnings History Shows

Robinhood has fallen after each of its last four earnings reports, with declines ranging from 3.61% to 13.24%. In July, EPS of $0.62 beat the $0.43 estimate, yet the stock still dropped 3.61%. The average absolute move across those four reports was 9.14%, a bit below the 10.2% the options market is currently pricing in.

Last quarter, revenue came in at $1.31 billion, up 32.3% from a year earlier, and the company reported 28.4 million users, an increase of 7.2%. This quarter, the market expects revenue growth to slow to between 12% and 13%. The same quarter last year saw a 100% jump, and Robinhood has missed revenue estimates several times over the past two years — a track record that makes the $1.44 billion consensus one of the most closely watched numbers on Tuesday.

Market Pressure and the Broader Backdrop

Brokerage stocks have struggled amid a wider sell-off, with rising oil prices and heavy foreign institutional outflows adding to the pressure. Brent crude has been near $114 to $115 a barrel. For brokerages like Robinhood, whose results analysts model through trading volumes and client assets, the sell-off backdrop adds weight to what investors will read into this week's numbers.

Wall Street ended Friday lower. The Dow fell 1.23% to 52,215.16, and the S&P 500 slipped 0.52%.

Analyst Views Ahead of the Report

Wells Fargo's Daniel Welden cut his price target to $120 from $125 and kept a Hold rating. He updated his estimates for trading volume and assets under management.

Rosenblatt's Chris Brendler initiated coverage with a Buy rating and a $135 target, implying 42% upside. He pointed to possible changes in Pattern Day Trading rules — the regulations that currently restrict frequent day trading in smaller margin accounts — as a plus for some of Robinhood's most valuable customers.

Truist's David Smith raised his target to $134 from $130 and maintained a Buy rating. He sees more long-term value in self-directed platforms than in advisor-led firms.

TipRanks lists a Strong Buy consensus, based on 20 Buy ratings and three Holds from the last three months. The average target of $139 implies 46% upside. StockStory puts the average analyst target at $134.90, with a current stock price of $94.88.

Notably, every analyst target cited here — from Wells Fargo's $120 to the $139 consensus average — sits above the top of the options-implied range, a gap that captures the tension heading into Tuesday's print between the Street's targets and the market's near-term pricing of earnings risk.

This article first appeared on CoinCentral. The original post is titled "Is Robinhood (HOOD) Stock a Buy Ahead of Earnings Tuesday?"