Shares of media-streaming technology expert (NASDAQ: ROKU) rose 50.5% in July, according to data from S&P Global Market Intelligence. The company had its ups and downs last month, but one market-moving event stood out among the rest. Roku reported strong business results for the second quarter, leaving analysts flat-footed and investors inspired.

The average Wall Street analyst expected Roku to report an adjusted net loss of $1.27 per diluted share in the second quarter, based on roughly $773 million in top-line sales. In the actual report on July 27, Roku left these targets far behind. The net loss stopped at $0.76 per share, slightly better than the $0.82 loss per share seen in the year-ago period. Sales rose 11% year over year to $847 million. Roku's stock closed 31% higher the next day.

Management set up third-quarter guidance targets slightly above the Street views at the time, citing "recovery signals" in the struggling digital advertising market and generally rising viewership metrics. The recently introduced cost-cutting program remains in effect. Roku's operating expenses should increase slower than usual in the third quarter as the all-important media and entertainment (M) ad-buyer segment wrestles with diminished content schedules in the fall amid Hollywood's twin strikes.

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Source Fool.com