fuboTV Shares Down 4% Despite Strong Preliminary Q4 Results

• FuboTV Inc. (NYSE:FUBO) reported earnings per share (EPS) of -$0.02, exceeding expectations.
• The company's revenue for Q1 2025 was approximately $416.3 million, slightly above the estimated $415.5 million.

FuboTV Inc. (NYSE:FUBO) is a leading sports-first live TV streaming platform, offering a wide range of sports and entertainment content to its subscribers. The company competes with other streaming services like Hulu + Live TV and YouTube TV, with a focus on sports content setting it apart in the competitive streaming market.

On May 2, 2025, FuboTV reported earnings per share (EPS) of  -$0.02, exceeding the estimated -$0.04. This significant achievement highlights the company's strong financial performance. The revenue for the first quarter of 2025 was approximately $416.3 million, slightly surpassing the estimated $415.5 million, indicating steady growth.

FuboTV's financial results for Q1 2025 show a positive trajectory. The company surpassed its subscriber guidance and achieved its revenue targets. It also made over $100 million in improvements across key profitability metrics, such as Net Income (Loss), Adjusted EBITDA, Net Cash provided by operating activities, and Free Cash Flow.

The price-to-sales ratio of 0.0021 suggests that the market values the company's sales modestly compared to its stock price. The enterprise value to sales ratio of 0.134 reflects the company's total valuation in relation to its revenue. FuboTV's enterprise value to operating cash flow ratio is 0.347, indicating efficient conversion of its enterprise value into cash flow. However, with a current ratio of 0.704, FuboTV may face challenges in covering its short-term liabilities with its current assets.

• fuboTV Inc. (NYSE:FUBO) anticipates an earnings per share (EPS) of -$0.04 and revenue of approximately $415.5 million for its upcoming quarterly earnings.
• The company has seen a 128% increase in its share price year-to-date, outperforming the Zacks Consumer Discretionary sector and the S&P 500.
• Despite its stock performance, fuboTV faces financial challenges, including a negative price-to-earnings (P/E) ratio of -5.57 and a high debt-to-equity ratio of 2.09.

fuboTV Inc. (NYSE:FUBO) is a prominent player in the live TV streaming market, focusing primarily on sports content. As it prepares to release its quarterly earnings on May 2, 2025, Wall Street anticipates an earnings per share (EPS) of -$0.04 and revenue of approximately $415.5 million. Despite these projections, fuboTV has shown significant growth in its stock performance.

FUBO has experienced a remarkable 128% increase in its share price year-to-date. This growth surpasses the Zacks Consumer Discretionary sector's decline of 11.3% and the S&P 500's drop of 10.7%. The Zacks Broadcast Radio and Television industry has only grown by 1.4% in comparison. A key driver of this success is fuboTV's merger with Disney to combine Hulu + Live TV with its platform, making it the sixth-largest pay TV provider by subscriber count.

Despite its impressive stock performance, fuboTV faces financial challenges. The company has a negative price-to-earnings (P/E) ratio of -5.57, indicating current unprofitability. Its price-to-sales ratio is 0.63, suggesting the stock is valued at 63 cents for every dollar of sales. The enterprise value to sales ratio is high at 134.34, which may point to a high valuation relative to sales.

FuboTV's financial metrics reveal further challenges. The earnings yield is -17.96%, highlighting ongoing unprofitability. Additionally, the debt-to-equity ratio of 2.09 indicates the company has more than twice as much debt as equity, raising concerns about its financial stability.

FuboTV's current ratio stands at 0.53, suggesting potential liquidity issues, as it may not have enough current assets to cover its current liabilities. Despite these challenges, fuboTV continues to strengthen its market position. It has secured exclusive rights to stream the Premier League in Canada, reinforcing its status as the exclusive home of England's top soccer league in the region.

FuboTV Inc. (NYSE: FUBO) is a sports-first live TV streaming platform that offers a wide range of channels, including sports, news, and entertainment. As a competitor in the streaming industry, FuboTV faces competition from other major players like Netflix, Hulu, and Disney+. The company is set to release its quarterly earnings on February 28, 2025, with Wall Street estimating an earnings per share (EPS) of -$0.16 and revenue of approximately $445.2 million.

Analysts forecast a quarterly loss of $0.12 per share for Fubo, marking a 29.4% year-over-year improvement. This suggests that the company is making progress in reducing its losses. Revenue is expected to reach $446.66 million, an 8.9% increase from the same quarter last year. This growth in revenue indicates that Fubo is expanding its customer base and increasing its market share.

The stability in the consensus EPS estimate over the past 30 days is noteworthy. Analysts have not revised their initial estimates, which can be a critical factor in predicting investor reactions. Empirical research shows a strong correlation between trends in earnings estimate revisions and short-term stock price performance. Investors should closely monitor these estimates as Fubo's earnings announcement approaches.

FuboTV's financial metrics reveal some challenges. The company has a negative price-to-earnings (P/E) ratio of -5.86, indicating it is not currently profitable. The price-to-sales ratio is 0.77, suggesting the stock is valued at less than one times its sales. Additionally, the enterprise value to operating cash flow ratio is significantly negative at -14.76, highlighting difficulties in generating positive cash flow from operations.

FuboTV's debt-to-equity ratio stands at 1.61, indicating a higher level of debt compared to its equity. The current ratio is 0.54, suggesting potential liquidity concerns as the company may struggle to cover its short-term liabilities with its current assets. These financial metrics underscore the importance of the upcoming earnings report, which will provide insights into FuboTV's financial health and future prospects.

Analysts at Berenberg Bank provided their views on fuboTV Inc. (NYSE:FUBO), mentioning the reason for a significant share price decline (down almost 50% year-to-date), including lofty investor expectations for subscribers and the expectation of sportsbook contribution in 2022, as well as the company’s stock being tied into a general risk-off and mean reversion environment. Further, gaming-related stocks have seen negative price action as the market weighs the risk/reward of TAM estimates and promotional costs.

The analysts believe management’s subscriber guidance provided during the Q4 earnings call, could prove conservative in 2022 and set the company up for “beat-and-raise” quarters given strength in sports viewership.

The analysts maintain the view that the business will benefit from the shift in ad spend from traditional TV to digital, which will be further bolstered by the company’s native digital wagering platform. The analysts lowered their price target to $20 from $50, while maintaining their buy rating.