Live sports and TV streaming service fuboTV (NYSE:FUBO) will be reporting results tomorrow before market open. Here’s what investors should know.
fuboTV beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $386.2 million, up 20.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 1.61 million domestic subscribers, up 9.2% year on year.
Is fuboTV a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting fuboTV’s revenue to grow 8.4% year on year to $444.6 million, slowing from the 28.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. fuboTV has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.6% on average.
Looking at fuboTV’s peers in the media segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Disney delivered year-on-year revenue growth of 4.8%, meeting analysts’ expectations, and News Corp reported a revenue decline of 13.5%, topping estimates by 3.1%. Disney traded down 1% following the results while News Corp was also down 1.2%.
Read our full analysis of Disney’s results here and News Corp’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the media stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. fuboTV is down 10.1% during the same time and is heading into earnings with an average analyst price target of $4.35 (compared to the current share price of $3.73).
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