fuboTV (FUBO) to Report Fourth Quarter Revenues: What’s in the Cards? – February 18, 2022

fuboTV Inc. (FUBO Free Report) is expected to release fourth quarter 2021 results on February 23.

The company expects revenue in the range of $205 million to $210 million, indicating mid-term growth of 97% on an annual basis.

Zacks’ consensus estimate for fourth-quarter revenue is pegged at $213.52 million, indicating a 103.19% year-over-year increase.

The consensus loss mark was flat for the past 30 days at 66 cents per share.

Let’s see how things went before this announcement.

Factors to consider

Strengthening fuboTV’s sports streaming offerings are expected to continue to drive revenue in the quarter ahead.

The company’s strengthening position in online sports betting likely contributed to the fourth quarter performance.

fuboTV previously received approval from the Iowa Racing and Gaming Commission (IRGC) to offer early deposit online sports betting in Iowa. During the fourth quarter, Fubo Gaming, a subsidiary of fuboTV, announced that it was going live in the mobile sports betting market with the official launch of Fubo Sportsbook in Iowa.

Fubo Sportsbook, a subsidiary of fuboTV, has partnered with NASCAR to become an Authorized Gaming Operator (AGO). Under the agreement, fubo Sportsbook and NASCAR will work together to provide racing fans with a unique and engaging betting experience.

Other than that, the growing advertising demand on the streaming platform, along with the ability to stream on multiple devices, should have helped the first line in the quarter to appear.

Strong momentum from fuboTV’s leading live TV streaming platform is expected to have contributed to paid subscriber growth in the fourth quarter.

In Q3 2021, the company reported 108% year-over-year growth in total paid subscribers, reaching 944,605. The trend is expected to continue in the quarter ahead.

Main developments in the fourth quarter

In the fourth quarter, the Professional Fighters League (PFL) entered into an exclusive multi-year partnership for its new PFL Challenger series with fuboTV. Under the agreement, fuboTv holds exclusive distribution rights to the PFL Challenger series. The move has bolstered fuboTV’s sports content offerings, the impacts of which should be reflected in future results.

fuboTV has also entered into a distribution agreement ahead of the National Basketball Association (NBA) and National Hockey League (NHL) 2021-2022 season with AT&T (J Free Report) – owned by AT&T SportsNet Rocky Mountain – launched on fubTv as part of the deal.

Through this agreement, fuboTV will carry AT&T SportsNet Rocky Mountain’s extensive regional coverage of the three major professional sports teams, in addition to other ancillary programming and behind-the-scenes content.
In November, fuboTV announced that it was now fully integrated with dentu international’s M1 people-based identity and data platform. Once the integration is in place, advertisers will be able to take advantage of M1’s highly accurate individual, device and connected panel data on fuboTV’s sought-after connected television (CTV) inventory. The inventory includes 50,000 live sporting events per year as well as over 100 premium sports, news and whole-home entertainment channels.

On December 8, fuboTV completed its acquisition of Molotov SAS, the French number one in live television. The acquisition should allow fuboTV and Motolov SAS to maintain their growth in their respective home countries. The buyout will also help leverage their capabilities, enhancing both business models on a larger scale.

On December 1, fuboTV completed its acquisition of Edisn.ai, an AI-powered computer vision platform with patent-pending video recognition technologies based in Bangalore, India. The acquisition of Edisn.ai will contribute to fuboTV’s mission to create a more interactive and immersive live television experience.

During the quarter, Fubo Gaming announced the launch of Fubo Sportsbook in Arizona, making it the second state in which the market-defining sportsbook is available.

What our model says

According to the Zacks model, the combination of a positive earnings ESP and Zacks rank #1 (strong buy), 2 (buy), or 3 (hold) increases the chance of an earnings beat. But it is not the case here.

fuboTV has an ESP on earnings of -0.76% and a #3 Zacks rating. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Stock to consider

Here are a few companies you might want to consider, as our model shows they also have the right combination of elements to show a pace of earnings in their next releases:

PlayAGS (AGS Free Report) has a +5.66% Earnings ESP and Zacks Rank #2. The company is expected to announce its fourth quarter 2021 results on March 10.

The AGS is up 5.2% over the past year against the 30.08% decline in the gaming industry Zacks and the 21.8% drop in the consumer discretionary sector over the past year. You can see the full list of today’s Zacks #1 Rank stocks here.

Gildan Sportswear (GIL Free Report) has a +9.57% Earnings ESP and a Zacks Rank #2. The company is expected to announce its fourth quarter 2021 results on February 23.

The GIL is up 40.8% over the past year against the 8.3% drop in the Zacks Textile – Apparel industry and the 21.8% drop in the Consumer Discretionary sector.

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