Key Highlights

  • Flutter Entertainment shares are trading up 6.25% at $87.75, against a previous close of $82.59.
  • The third-quarter report is due on Wednesday, Nov. 4, before the market opens.
  • Consensus calls for EPS of about $0.32 to $0.33 on Revenue of about $4.01 billion.
  • Oppenheimer cut its price target to $110 from $120 while keeping an Outperform rating.
  • The stock is down about 63% year to date.

Flutter Entertainment (NYSE:FLUT) shares are trading sharply higher ahead of the company's third-quarter Earnings on Wednesday, Nov. 4. The world's largest online sports betting and iGaming operator by revenue owns FanDuel, Paddy Power, Betfair, Sky Betting & Gaming, PokerStars, Sportsbet and Sisal, serving customers in more than 100 markets. The rally comes in a broad risk-on session, with DraftKings (NASDAQ:DKNG) also up roughly 5%.

Rally Despite Oppenheimer Target Cut

Oppenheimer cut its price target to $110 from $120 while keeping an Outperform rating, trimming 2026 and 2027 EBITDA estimates to $2.4 billion and $2.97 billion. It flagged FanDuel's engagement-over-margin strategy and slowing iGaming. The firm said the company's market-making on third-party prediction exchanges is the biggest potential upside catalyst.

Another research firm also pared estimates, citing a weak September NFL calendar, higher promotions and Brazil's betting ban. The shares remain at depressed levels, down about 63% year to date.

Report Setup and Recent Track Record

Consensus calls for EPS of about $0.32 to $0.33 and revenue of about $4.01 billion. Flutter beat estimates in four of the last seven quarters. In the second quarter it reported EPS of $0.49 against a $0.54 consensus, while revenue of $4.33 billion beat the $4.24 billion estimate and rose 3.3%.

This is the first report since Dan Taylor succeeded Peter Jackson as CEO on Oct. 1. Options markets imply a move of about 11.68%, and the historical average post-earnings move is about 10.41%.

FanDuel Net Gaming Revenue and Guidance in Focus

Investors will watch FanDuel's U.S. net gaming revenue and promotional intensity. Jefferies expects U.S. net gaming revenue of about $1.483 billion, in line with guidance of $1.48 billion, and notes that September promotions ran about 16% below last year. A late Labor Day also reduced September NFL games, which guidance already reflects.

The 2026 adjusted EBITDA guidance was lowered by $210 million to a $2.655 billion midpoint in August. Investors also want updates on the UK tax increase, the Brazil betting ban, prediction market competition and World Cup Marketing spend.

Valuation Markers and Revenue Mix

Flutter has a market Capitalization of about $15.23 billion, trailing EPS of $5.09 and a 52-week range of $72.56 to $235.77. FY2025 revenue of about $16.4 billion came mainly from sportsbook, at about 53%, and iGaming, at about 44%. Investors will follow net gaming revenue, EBITDA guidance and prediction market commentary in Wednesday's report.