Earnings Previews: Coinbase, FuboTV, Unity Software and More

FuboTV

Live TV streaming platform FuboTV Inc. (NYSE: FUBO) came public in October 2020 at $10 a share. Since then the share price has more than doubled, but that is way below the spike of more than 40% the company enjoyed in late December.

While the streaming TV sector is crowded with a plethora of bigger players, FuboTV is planning to parlay its acquisition of Balto Sports into an in-house sportsbook for its streaming customers. This could be a big differentiator (and moneymaker) for the company. Without the betting gambit, however, FuboTV could face subscriber issues. The company reports results late Tuesday.

The stock gets ratings of Buy or Strong Buy from six of seven brokerages covering the stock. At a trading price of around $27.50, the upside potential based on the median price target of $34 is 23.6%. At the high target of $60, the upside potential is around 122%.

Analysts are looking for FuboTV to post revenue of $121.43 million, up 1.4% sequentially, and an adjusted loss per share of $0.49, smaller than the $0.67 loss per share in the first quarter. For the full year, analysts expect the stock to post a loss per share of $2.04, less than a third of the year-ago loss per share of $7.32. Revenue for the year is expected to jump by 144% to $531.21 million.

FuboTV is not expected to post a profit in 2021, 2022 or 2023. The stock currently trades at 6.7 times its enterprise value-to-sales (EV/S) rate. The EV/S ratio is estimated at 4.2 in 2022 and 2.6 in 2023. The stock’s post IPO trading range is $8.26 to $62.29, and the company does not pay a dividend.

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Unity Software

Real-time 3D video development platform maker Unity Software Inc. (NYSE: U) has added about 61% to its share price since its September 2020 IPO. In late December, the stock spiked to a gain of about 150%, but shares have trended downward since then. Cathie Wood’s ARK Invest holds a total of about 12.24 million shares of Unity stock, valued at around $1.35 billion. Unity is set to announce quarterly results after markets close on Tuesday.

Of 12 analysts covering the stock, nine rate the shares at Buy or Strong Buy, and two rate the stock a Hold. At a price of around $110.80, the upside potential to the median price target of $125 is 12.8%. At the high target of $170, upside potential is more than 53%.

Second-quarter revenue is expected to rise sequentially by 3.4% to $242.5 million, while the loss per share rises from $0.10 in the first quarter to $0.12. For the full year, analysts now expect Unity to post a loss per share of $0.34, an improvement of five cents per share year over year. Revenue is expected to rise by more than 31% to $1.01 billion.

Unity Software is not expected to post a profit in 2021, 2022 or 2023. Shares trade at a multiple of 28.0 to the estimated 2021 EV/S ratio, 22.1 the 2022 estimate and 17.3 the 2023 estimate. The stock’s post-IPO range is $65.11 to $174.94, and the company does not pay a dividend.