FanDuel parent Flutter Entertainment surged early Wednesday after the sports betting and gambling company's third-quarter earnings late Tuesday smashed Wall Street estimates.
Flutter reported earnings of 43 cents per share adjusted for the quarter, improving from a loss of 10 cents per share last year. Revenue jumped 27% to about $3.25 billion.
The results easily beat FactSet expectations of a 26 cent loss per share adjusted on $3.06 billion in revenue.
Flutter, which also operates the likes of Paddy Power, Sportsbet and more, reported a 16% increase in its average monthly player (AMP) count to 12.92 million.
CEO Peter Jackson commented that the U.S. has seen a strong start to the NFL season. So far, the season's peak wagers per minute are higher than Super Bowl LVII, which is typically the largest betting event of the sports calendar.
Within the U.S., Flutter's FanDuel sportsbook and iGaming products saw AMPs increase 28% to 3.2 million. Flutter's U.S. revenue increased 51%.
However, company noted that its Q3 outperformance has subsequently been more than offset by unfavorable sports results so far in the fourth quarter.
Flutter raised its full-year revenue guidance by 1%, now forecasting 22% growth at the midpoint. However, the company narrowed its U.S. revenue guidance by 1%, now expecting $6.15 billion at the midpoint.
FactSet analysts expect full-year revenue increases about 20% to $14.13 billion.
Flutter also raised its adjusted EBITDA guidance by 1% to 35% at the midpoint.
Flutter, during its late-September investor day, provided medium-term 2027 guidance and a new $5 billion share repurchase program.
Along with the $368 billion total regulated addressable market by 2030, the company projects the midpoint of its U.S. and rest-of-world 2027 revenue at $21 billion, representing a three-year annual growth rate of 14%. The company is also targeting 2027 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of more than $5 billion, while its adjusted EBITDA margin grows to 25%.
Flutter Stock
Flutter stock rallied 5% early Wednesday, breaking out above a 252.84 buy point for a flat base.
The current buy zone, which extends 5% beyond the buy point, stretches to 265.48.
FLUT stock eased 1% during Tuesday's regular session.
Shares of the FanDuel parent are up 16% so far this year through Tuesday's close.
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