Yahoo Finance fuboTV Inc. (NYSE:FUBO) Just Reported, And Analysts Assigned A US$2.98 Price Target
fuboTV Inc. (NYSE:FUBO) shareholders are probably feeling a little disappointed, since its shares fell 7.5% to US$1.85 in the week after its latest annual results. The results look positive overall; while revenues of US$1.4b were in line with analyst predictions, statutory losses were 6.2% smaller than expected, with fuboTV losing US$1.04 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on fuboTV after the latest results.
See our latest analysis for fuboTV
Taking into account the latest results, the most recent consensus for fuboTV from eight analysts is for revenues of US$1.56b in 2024. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.78. Before this earnings announcement, the analysts had been modelling revenues of US$1.62b and losses of US$0.81 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers fell somewhat.
The analysts have cut their price target 19% to US$2.98per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. 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$5.00 per share, while the most bearish prices it at US$2.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the fuboTV's past performance and to peers in the same industry. It's pretty clear that there is an expectation that fuboTV's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 60% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10.0% per year. Even after the forecast slowdown in growth, it seems obvious that fuboTV is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple fuboTV analysts - going out to 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for fuboTV that you need to be mindful of.
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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.
