Flutter Entertainment Reports Disappointing Q4 Results and Weak FY26 Guidance
Flutter Entertainment's shares fell 14.8% in pre-market trading, hitting a 52-week low of $107.31, following the release of its Q4 earnings report.
The company reported Q4 revenue of $4.74 billion, missing Wall Street's expectations of $4.97 billion, and adjusted EPS of $1.74, below the forecast of $1.99. This disappointing performance has raised concerns about Flutter's future growth, especially with its 2026 revenue guidance of $18.4 billion falling short of analysts' projections. CEO Peter Jackson acknowledged the competitive pressures in the market, which could further impact investor confidence.
The significant drop in stock price reflects the market's reaction to Flutter's weak earnings and cautious outlook for the upcoming fiscal year. Investors are now closely monitoring the company's strategies to regain momentum in a challenging environment.
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- Earnings Forecast Cuts: Analyst Monique Pollard has reduced her adjusted EBITDA forecasts for Flutter by 10% for Q1 and 37% for Q2, indicating uncertainty in the company's earnings momentum in the U.S. market, particularly regarding its investments in prediction markets.
- Buyback Forecast Adjustments: Pollard also lowered buyback forecasts for FY26 and FY27, cutting them from $600 million to $250 million and from $1.5 billion to $750 million, respectively, to ensure that leverage remains within management's medium-term guidance range of 2-2.5x.
- Market Reaction Expectations: Flutter (FLUT) shares are expected to open more than 2% lower on Thursday, reflecting heightened market concerns about the company's future profitability, which may impact investor confidence and stock performance.
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