fuboTV Inc. FUBO is set to report first-quarter 2023 results on May 5.
Within North America, the company forecasts first-quarter 2023 revenues in the range of $295-$300 million. Within the Rest of the World (ROW), the company forecasts first-quarter 2023 revenues in the range of $5.5-$6.5 million.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $303.8 million, indicating an increase of 25.52% year over year.
The consensus mark for loss is pegged at 63 cents per share, which has remained unchanged in the past 30 days.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Strength in advertising demand on the 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 first quarter.
North America subscribers are expected to reach 1.14-1.16 million in the first quarter of 2023. ROW subscribers are expected to reach 368-373 thousand in the first quarter of 2023.
The company closed 2022 with 1.445 million total paid subscribers, up 29% from the prior year. Net subscriber additions in the fourth quarter of 2022 were around 80K, driven by the company’s sports-first positioning, which differentiates fuboTV from other live TV-streaming platforms. The trend is expected to have continued in the to-be-reported quarter.
In the first quarter, fuboTV rebrands its consumer facing products as Fubo. The nationwide campaign was co-produced by Ryan Reynolds and featured Kevin Garnett and Mark Sanchez. This campaign is expected to have positively impacted on the number of subscribers in the to-be-reported quarter.
The company’s strengthening position in online sports wagering is likely to have aided first-quarter performance.
Key Developments in Q1
In the first quarter, MLB.TV has been added to fuboTV’s streaming platform. The customers can add MLB.TV to their existing plan for $24.99/month. MLB.TV offers every out-of-market MLB game live. This addition is expected to boost the top line in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
fuboTV currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Veru VERU, Shift Technologies SFT and Cisco Systems CSCO have the right combination of elements to post an earnings beat in their upcoming releases.
Veru is slated to report first-quarter 2023 results on May 11. The company has an Earnings ESP of +7.00% and a Zacks Rank #2 at present. Veru’s earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, the average negative surprise being 41.24%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate is pegged at a loss of 33 cents per share, suggesting a year-over-year decline of 83.33%. VERU’s quarterly revenues are estimated to decrease 69.05% year over year to $4.03 million.
Shift Technologies has an Earnings ESP of +33.75% and a Zacks Rank #2 at present. The company is scheduled to report first-quarter 2023 results on May 11. Shift Technologies’ earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while missing the other two, the average negative earnings surprise being 0.25%.
The Zacks Consensus Estimate is pegged at a loss of $3.22 per share, indicating a year-over-year increase of 54%. The consensus mark for revenues is pegged at $57.04 million, suggesting a year-over-year decline of 74.02%.
Cisco Systems currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is slated to report its first-quarter 2023 results on May 17. Cisco System’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.77%.
The Zacks Consensus Estimate for Cisco System’s first-quarter earnings is pegged at 97 cents per share, implying a year-over-year increase of 11.49%. CSCO is estimated to report revenues of $14.39 billion, which suggests growth of 12.10% from the year-ago quarter.
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