Sports-centric multichannel streaming video service FuboTV (FUBO) late Tuesday crushed Wall Street’s targets for the second quarter and raised its guidance for the full year. FuboTV stock jumped in extended trading.
FuboTV added 91,000 subscribers in the June quarter, ending the period with 682,000 total subscribers. Analysts expected the New York City-based company to add 12,000 new subscribers in the second quarter for a total of 602,000 subscribers.
FuboTV lost an adjusted 38 cents a share on sales of $130.9 million in the second quarter. Wall Street had predicted a loss of 49 cents a share on sales of $121.4 million, according to FactSet. In the year-earlier period, it lost an adjusted $1.46 a share on sales of $44.2 million.
FuboTV offers its streaming video service in the U.S., Canada and Spain. Subscribers can stream a mix of more than 100 live TV channels through the cable TV replacement service.
FuboTV Stock Jumps On Beat-And-Raise Report
“FuboTV delivered a strong second quarter of 2021 across all of our key financial and operational metrics: subscribers, total revenue and advertising revenue,” Chief Executive David Gandler said in a news release.
After FuboTV’s second-quarter beat, the company increased its revenue and subscriber guidance for the full year.
It now forecasts 2021 revenue of $560 million to $570 million, representing 116% growth year over year at the midpoint. FuboTV expects to end the year with 910,000 to 920,000 subscribers, or 67% growth at the midpoint vs. year-end 2020.
In after-hours trading on the stock market today, FuboTV stock surged 10.8%, near 31.70. During the regular session Tuesday, FuboTV stock rose 2.5% to 28.64.
Guides Higher For Current Quarter
For the current quarter, FuboTV predicted revenue of $140 million to $144 million, up 132% year over year at the midpoint. It did not give a target for per-share earnings. Analysts had been modeling FactSet to lose 48 cents a share on sales of $128.5 million.
It expects to end the September quarter with 810,000 to 820,000 subscribers, up 79% year over year at the midpoint.
FuboTV stock ranks fifth out of 22 stocks in IBD’s Leisure-Movies & Related industry group, according to IBD Stock Checkup.
FuboTV Possible Acquisition Target
Earlier Tuesday, investment bank Oppenheimer said FuboTV and Rush Street Interactive (RSI) could be acquisition targets amid consolidation in the online betting space.
The DraftKings (DKNG) acquisition of Golden Nugget Online Gaming (GNOG) could spur other deals in the sports betting and online gambling segment, Oppenheimer analyst Jed Kelly said in a note to clients. The $1.56 billion Golden Nugget deal is the second in five days after Penn National Gaming (PENN) acquired sports news site theScore for $2 billion.
FuboTV expects to launch Fubo Sportsbook, a comprehensive sports entertainment experience through sports betting, in the fourth quarter.
FuboTV stock has been consolidating for the past 30 days at a buy point of 35.19, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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