JMP maintains Flutter stock with $317 target post earnings

On Thursday, JMP Securities analysts maintained their Market Outperform rating for Flutter Entertainment shares (market cap: $41.9 billion), alongside a steady price target of $317.00. According to InvestingPro analysis, the stock currently appears undervalued, with analyst targets ranging from $254 to $350. The firm’s analysis revealed that Flutter’s overall financial results were a mixed bag in comparison to their projections. The company’s revenue and EBITDA fell short of consensus expectations by 5% and 13%, respectively. Despite these challenges, Flutter maintains strong fundamentals with $14.05 billion in revenue and a healthy gross profit margin of 47.7%. When excluding corporate expenses, segment-level EBITDA was only marginally below JMP’s model by 1%.

The revenue shortfall of $230 million was attributed in part to the impact of March Madness, an element that consensus forecasts did not fully account for. Corporate expense played a significant role in the discrepancy between the actual results and JMP’s expectations. Despite these figures, U.S. revenue and EBITDA showed a slight increase of 1% over JMP’s estimates, while International revenue and EBITDA were on target and 2% below, respectively. The Asia Pacific region, in particular, delivered weaker results.

Adding to the challenges, unfavorable gaming outcomes in the U.S. continued into April, prompting a downward adjustment in the company’s full-year forecasts. Flutter Entertainment, which is listed on the New York Stock Exchange under the ticker (NYSE:FLUT), navigates through these financial variances as analysts keep a close eye on its performance metrics and market position. For deeper insights into Flutter’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Flutter Entertainment reported its first-quarter 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company reported an EPS of $1.59, falling short of the expected $2.05, while revenue reached $3.67 billion, below the forecasted $3.96 billion. Despite these misses, Flutter Entertainment showed robust growth in several areas, with group revenue increasing by 8% and net income rising by 289%. The U.S. segment stood out with an 18% year-over-year revenue increase and adjusted EBITDA reaching $161 million, a fivefold increase from the previous year. Flutter also completed strategic acquisitions in Italy and Brazil, enhancing its global footprint. Analysts from firms such as Morgan Stanley (NYSE:MS) and Citizens Bank raised questions about the company’s performance in specific sports markets and its innovative product offerings like "Your Way" pricing technology. Looking forward, Flutter Entertainment projects group revenue of $17.08 billion for the year, with an adjusted EBITDA of $3.18 billion, and plans to expand further into the U.S. and Canadian markets.

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