fuboTV Earnings: All Eyes Are on Forecast

fuboTV (FUBO) is a company whose premise is built around a rising secular trend – that of cord-cutting, the switch from linear to connected TV (CTV).

Investors have warmed to this theme, and despite a pullback during February’s market rout, the stock is still up by 46% year-to-date.

Ahead of today’s Q4 earnings after the bell, Wedbush analyst Michael Pachter expects FUBO’s upward trajectory to continue.

The company has already told investors what to expect from the quarter when it made a 4Q20 pre-announcement in early January. Back then, FUBO raised both its revenue and subscriber guidance.

4Q revenues are anticipated in the $94-$98 million range; the bottom end also marks the consensus estimate, although Pachter expects FUBO to hit the high end of its guidance at $98 million.

The analyst also expects a lower loss per share of -$0.31 compared to the Street’s anticipated 73 cent loss. As for paid subscribers, the analyst estimates 545,000, while FUBO has guided for paid subscribers to be 545,000 plus.

While some companies have refrained from providing guidance in these uncertain times, Pachter expects FUBO to do so. In, fact the analyst thinks FUBO will raise its FY21 revenue forecast beyond its prior range of $415 – 435 million.

And while Pachter has not included FUBO’s foray into the world of sports wagering into his model, the analyst sees plenty of evidence why the business will continue to improve as the decade progresses.

“We believe that fuboTV’s comprehensive sports offering provides a competitive advantage, and that it can grow its subscriber base by 50% or more per year for the next several years, reaching 5% of the addressable market for cord-cutters by FY:23,” Pachter said. “Our model assumes that fuboTV can reach positive operating margin by FY:23.”

To this end, ahead of the print, Pachter rates FUBO an Outperform (i.e. Buy) along with a $50 price target. The implication for investors? Upside of 22%. (To watch Pachter’s track record, click here)

Most of the Wedbush analyst’s colleagues agree. With 7 Buys vs. 1 Hold and Sell, each, the stock has a Moderate Buy consensus rating. However, the stock’s recent share gains have pushed the price up to $40.63, leaving room for just 1.5% upside before hitting the 41.17 average price target. (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.