FuboTV Stock Earnings and Forecast: FUBO advances on Q3 earnings beat

• FUBO jumped more than 4% on Q3 results.
• FuboTV offered up a beat on top and bottom lines.
• FUBO stock is down 90% over the past year.

FuboTV (FUBO), the company that bills itself as the Netflix of live sports, saw its share price rise in Friday's premarket after the New York-based company reported earnings that beat consensus on the top and bottom lines. FUBO stock has risen 4.7% to $3.55.

FuboTV earnings news

Fubo reported Q3 adjusted earnings per share (EPS) of $-0.52, which was about 10 cents ahead of the average forecast from Wall Street. Likewise, revenue of $225 million beat consensus of $213 million. 

Guidance for the fourth quarter was rather conservative, however. Management said that revenue would arrive between $227.5 million and $282.5 million – an unusually wide range. The midpoint here – $250 million – was well under the prior consensus from analysts of just above $275 million. The company also said it expected to have about 1.365 million subscribers by the end of the year.

The market is likely mostly enthused by the fact that while much of the pandemic's top growth stocks are seeing hefty sales growth percentages fall by the wayside, FuboTV still grew sales by just under 44% YoY in the third quarter.

“Revenue and subscriber growth for our global streaming business was solid with North American subscribers reaching a record high of 1,231,000," said CEO David Gandler in a statement. "As our premium offering continues to drive an ever greater number of consumers to our platform, our differentiated product experience and broad content portfolio keep them engaged - with this quarter representing an all-time low for subscriber churn."

Gandler especially focused on the 10 percentage point drop in adjusted EBITDA Margin to -41.2%. Of course, that still looks quite poor as a snapshot, but at least it is an improvement. Also, it distracts from the fact that total operating expenses grew at about the same rate as revenue and that the net loss grew by 44% YoY.

Source: Q3 Shareholder Letter

FuboTV stock forecast

The 8-week moving average is now pushing above the 30-week average – a positive sign. This was helped by the mid-August surge to $8.14, which dissipated rather abruptly. Despite being down 90% over the past year, however, FUBO stock has actually recovered on the Relative Strength Index (RSI) and is no longer in oversold territory. The market seems to be saying that it is now fairly priced. 

FUBO weekly chart

The daily chart below shows a number of recent lower highs, however. FUBO bulls have their work cut out for them. First, they need to conquer the October 18 high at $4.74. Then they have resistance from mid-September at $5.12. Supporters will need to focus on these two points of resistance before they can think about the longer-term high at $8.14.

FUBO daily chart

The author owns shares of FUBO.