Most of the big guns have reported Q2 earnings already, but this week offers plenty of interesting financial statements to pore over. One of which will be the quarter’s action at one of the market’s most volatile stocks.
fuboTV (FUBO) will step up to the earnings plate on Tuesday (Aug 10 AMC). The sports streaming specialist elicits a wide spectrum of opinions with supporters abetted by the huge growth strides made over the past year and the anticipated addition of a sportsbook in the year’s second half. The detractors will point to a loss-making vehicle built on wafer thin margins without the ammunition required to ultimately fend off industry giants and turn a profit.
Wedbush’ Michael Patcher sits squarely in the FUBO bull camp.
“fuboTV’s ability to offer comprehensive entertainment and sports viewing is a real differentiator, and its focus on the sports viewer/bettor should serve to accelerate subscriber growth,” the analyst said. “As the company learns more about the viewing habits of its audience, it should be able to exploit its data set to drive ad ARPU even higher, and we expect fuboTV to break even by the end of 2023 or early 2024.”
Pachter’s estimates call for revenue of $122 million, at the high end of of FUBO’s $120 – 122 million guidance, and above the Street’s $118 million forecast. The analyst has non-GAAP EPS coming in at $(0.62) vs. The consensus estimate of $(0.48). Pachter anticipates paid subscribers in Q2 will reach 605,000, a 111% year-over-year increase and up 2% sequentially, again at the top end of FUBO’s guidance for 600,000 – 605,000 paid subs.
Points of interest to look out for will be the lesson learnt to-date from the June launch of the FTP (free-to-play) beta test, and more info regarding the plans for wagering in Q4. Pachter also notes that his model has yet to include any sports betting contribution, which should “eventually add meaningfully to revenue growth and at high margin.”
All in all, the analyst reiterated an Outperform (i.e., Buy) rating for the shares, backed by a $53 price target. The implication for investors? Upside of a whopping 102%. (To watch Pachter’s track record, click here)
The Street’s average price target is a more modest $38.86, yet the figure still represents one-year gains of 48%. Barring one Hold, all 6 other recent reviews are to Buy, culminating in the stock’s Strong Buy consensus rating. (See FUBO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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