Results: fuboTV Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a sad week for fuboTV Inc. (NYSE:FUBO), who've watched their investment drop 19% to US$2.52 in the week since the company reported its quarterly result. Although revenues of US$416m were in line with analyst expectations, fuboTV surprised on the earnings front, with an unexpected (statutory) profit of US$0.55 per share a nice improvement on the losses that the analystsforecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 3 warning signs about fuboTV. View them for free.

Following the recent earnings report, the consensus from six analysts covering fuboTV is for revenues of US$1.53b in 2025. This implies a noticeable 6.7% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 76% to US$0.36. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$1.67b and losses of US$0.31 per share in 2025. While we note the small dip in to the revenue outlook, the analysts are now also predicting for the business to become profitable next year - sooner than previously forecast - which looks like a pretty clear lift in expectations.

Check out our latest analysis for fuboTV

The analysts have cut their price target 13% to US$4.19per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values fuboTV at US$6.00 per share, while the most bearish prices it at US$2.75. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 8.9% annualised decline to the end of 2025. That is a notable change from historical growth of 40% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - fuboTV is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting fuboTV to become profitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of fuboTV's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for fuboTV going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for fuboTV you should be aware of, and 1 of them is a bit unpleasant.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.