Could Q2 Earnings Be a Turning Point for FanDuel Parent Flutter?

The FanDuel parent posts Q2 earnings on August 7.

Flutter Entertainment (NASDAQ:FLUT), the parent company of online sports betting leader FanDuel, has seen its stock price rise steadily this year, up about 20% year-to-date.

With Flutter’s second quarter earnings coming out later this week, August 7, investors will be tuned in to see if the momentum will continue.

The consensus view among the analysts, according to Zack’s, is that Flutter will generate about $4.2 billion in revenue in the quarter, which would be up 17% from the same quarter a year ago and from Q1 of 2025. The firm posted $3.6 billion in revenue in both Q2 of 2024 and Q1 of 23025.

Earnings are targeted at $2.55 per share for Q2, according to median estimates. That would be up 60% from the first quarter of 2025, but off roughly 2% from the same quarter a year ago. It should be noted that Flutter fell short of earnings estimates in Q1.

However, Flutter stock has gotten a boost from its recent inclusion into the Russell MidCap Growth index. Being added to this index raises its profile, but more importantly, the addition means it will be part of various ETFs that track midcap growth stocks through this benchmark.

The company also announced that it is repurchasing $225 million worth of stock. This should help raise its share price, as it reduces the supply of outstanding shares, thus increasing the value of its remaining shares.

Analysts are betting on Flutter

Wall Street analysts are clearly betting big on Flutter stock, as it recently received some major price target upgrades.

Within the past couple of weeks, Oppenheimer raised its target to $350 per share, up from $310. That suggests a 16% return over the next 12 months. Oppenheimer boosted its target due to several factors, including record June holds in the U.S. and accelerating iGaming trends, along with expectations for it to become more involved in prediction markets.

Barclays also set a $350 price target for the stock, up from $293 per share, while Stifel raised target to $353 per share, up from $315. Stifel cited its strong fundamentals heading into an improving market in the back half of the year.

In addition, analysts at Truist raised its expectations to $340 per share, up from the $280, while Citizens JMP set a price target of $323, up from $301.

Citizens JMP analyst Jordan Bender wrote that despite consistent headwinds for the online gaming sector – from higher taxes to slowing handle growth to bad sport outcomes – online gaming stocks are up 15% year-to-date on average. That trails only cruise lines among consumer discretionary stocks, according to the Fly.

Flutter stock has a high P/E ratio of 105, but the numbers are a bit skewed as the company only recently became profitable. It is more reasonably valued based on future earnings, with a forward P/E of 36 and a five-year PEG (P/E-to-growth) ratio of 0.25.

The company releases earnings on August 7 after the market closes. Certainly, some leading analysts are banking on an earnings beat.