Flutter Entertainment PLC (NYSE:FLUT) Quarterly Earnings Preview

• Flutter Entertainment PLC is set to release its quarterly earnings with an expected EPS of $1.08 and revenue estimates around $3.57 billion.
• Analysts predict Flutter Entertainment's cautious guidance for the US market, treating it like an IPO, with potential future updates to demonstrate market growth.
• Flutter's strategic move to the US is anticipated to enhance its market visibility and investment appeal, potentially facilitating its inclusion in the S&P 500 index.

On Tuesday, May 14, 2024, before the market opens, NYSE:FLUT is scheduled to release their quarterly earnings. Wall Street estimates suggest earnings per share (EPS) of $1.08. The revenue for the quarter is estimated to be approximately $3.57 billion. Flutter Entertainment PLC, the parent company of Paddy Power and Sky Bet, is preparing for one of its final quarterly updates on the London Stock Exchange before transitioning its primary listing to the US. This strategic move is influenced by the success of its sportsbook FanDuel and the valuation differences between markets, aiming to capitalize on FanDuel's growth and the broader valuation landscape overseas.

Analysts, including those from Jefferies, anticipate that Flutter Entertainment's management will adopt a conservative stance in their guidance ahead of the transition to the US market. They speculate that the company views the US listing somewhat akin to an initial public offering (IPO), suggesting that Flutter is positioning itself to potentially raise guidance or demonstrate market share gains in the future. This conservative approach in guidance could be a strategic move to manage expectations and set the stage for future growth announcements as the company adapts to its new market environment.

The shift from the UK to the US is significant, with London's FTSE 100 expected to lose over £22 billion in value as a result of Flutter Entertainment's departure. The company's market capitalization stands at approximately £26.4 billion, highlighting its substantial impact on the UK market and the potential for growth in the US. Flutter shareholders have decisively voted in favor of relocating the company's primary listing from the UK to New York, with an overwhelming 98% approval rate. This move is set to be finalized by the end of the month, marking a significant milestone in Flutter's history and its strategic focus on the US market.

Peter Jackson, the CEO of Flutter, has described New York as the company's "natural home," emphasizing the strategic benefits of the relocation. This move is expected to facilitate Flutter's inclusion in the benchmark S&P 500 index, which could attract tracker funds and ETFs, enhancing its market visibility and investment appeal. The company's decision to establish a secondary listing in the US earlier this year indicates a strategic pivot towards capitalizing on its growing US market presence. This transition follows a trend of UK technology businesses shifting their base to the US, seeking to leverage the larger and more dynamic US financial markets for growth and investment opportunities.