11th Nov 2020. 11.39am
Flutter Entertainment (FLTR) – Market Alert
Flutter beats earnings estimates on post-lockdown sports betting boom
Flutter expects to beat its earnings forecast by around £100m this year due to a boost from post-lockdown sports betting.
The owner of Sky Bet and Paddy Power said adjusted earnings for its brands outside of the US would be in the region of £1.28bn to £1.35bn in 2020, rather than the £1.18bn to £1.33bn it had previously suggested.
CEO Peter Jackson said performance in the third quarter had “exceeded expectations” and that reaching the $1bn mark for gross revenues in the US marked “a major ‘first’ for an online operator”.
Flutter has a strong track record of delivering strong sales growth (+50.61% 2019).
Like many growth stocks, Flutter trades on a high forward PE ratio of 29 times earnings – this means that failure to meet the markets lofty expectations will likely be punished by investors.
Flutter have a powerful long-term uptrend and the shares have been one of the FTSE’s top performers this year.
Recent price action has seen the shares stall at highs and enter a ‘consolidation phase’.
However, it should be noted that the shares are continuing to carve out higher swing lows during this consolidation phase and that is undoubtedly a bullish sign.
This research is prepared for general information only and should not be construed as any form of investment advice.