Back to top

Image: Bigstock

fuboTV (FUBO) to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

fuboTV Inc. (FUBO - Free Report) is set to report second-quarter 2021 results on Aug 10.

The company expects revenues to be in the range of $120-$122 million, indicating growth of 174% at the midpoint on a year-over-year basis.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $121.28 million, indicating an increase of 174.5% year over year.

The consensus mark for loss has narrowed 6% over the past 30 days to 47 cents per share.

Let’s see how things have shaped up prior to this announcement.

fuboTV Inc. Price and EPS Surprise


fuboTV Inc. Price and EPS Surprise

fuboTV Inc. price-eps-surprise | fuboTV Inc. Quote


Factors to Consider

Strength in advertising demand on streaming platform along with strong attachment rates on value-added services, such as cloud DVR storage, and the ability to stream on multiple devices is expected to have aided top-line growth in the to-be-reported quarter.

Investor focus will be on paid subscriber growth, which is an important metric for fuboTV. The popularity of its sports-first live TV streaming platform is expected to have aided paid subscriber growth in the second quarter.

The ability to stream a broad mix of over 100 live channels, including 42 of the top 50 Nielsen-ranked networks across sports, news and entertainment among others has been a huge attraction for subscribers.

The company expects total paid subscribers at the end of the second quarter to be in the range of 600K-605K, indicating growth of 111% at midpoint on a year-over-year basis.

Net subscriber additions in the first quarter were around 43K compared to a decline of over 28K in the year-ago period, driven by the company’s sports-first positioning, which differentiates fuboTV from other live TV-streaming platforms.

Aided by the company’s carriage agreement with The Walt Disney (DIS - Free Report) , fuboTV has one of the strongest football offerings in the market and is the only live streaming TV platform with every NFL in-market game and every college conference network.

Moreover, it entered into a carriage agreement with Marquee Sports Network, a joint venture of the Chicago Cubs and Sinclair Broadcast Group (SBGI - Free Report) , to  carry the network’s programming in the Cubs market territory, including all non-nationally televised regular season Chicago Cubs games, pregame and postgame shows, exclusive content, original programming, and much more.

Streaming hours growth is expected to have boosted TV streaming advertising on fuboTV’s platform.

In the first quarter of 2021, users (paid and trial) streamed over 228 million hours, an increase of 113% year over year. Moreover, monthly active users (MAUs) watched 129 hours per month on average in the quarter, an increase of 8% year over year.

fuboTV is expected to have benefited from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.

Key Developments in Q2

During the quarter, fuboTV acquired the exclusive live streaming rights to the Qatar World Cup 2022 qualifying matches of the South American Football Confederation.

Additionally, fuboTV app officially launched on LG webOS Smart TVs (2018-2021 models) in the United States, including its award-winning, LG OLED TV lineup.

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 odds of an earnings beat. But that;s not the case here.

fuboTV has an Earnings ESP of +27.66% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stock That Warrants a Look

Here is a company, which, per our model, have the right combination of elements to post an earnings beat in their upcoming release.

Agilent Technologies, Inc. (A - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here