Online casino and sports betting company Rush Street Interactive (NYSE:RSI) will be reporting results tomorrow after market close. Here’s what to look for.
Rush Street Interactive beat analysts’ revenue expectations by 11.9% last quarter, reporting revenues of $232.1 million, up 36.6% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Rush Street Interactive a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Rush Street Interactive’s revenue to grow 26.9% year on year to $245.9 million, improving from the 17.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Rush Street Interactive has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.5% on average.
Looking at Rush Street Interactive’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. DraftKings delivered year-on-year revenue growth of 13.2%, missing analysts’ expectations by 0.9%, and Churchill Downs reported revenues up 11.2%, topping estimates by 0.9%. DraftKings traded up 15.2% following the results while Churchill Downs’s stock price was unchanged.
Read our full analysis of DraftKings’s results here and Churchill Downs’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the consumer discretionary stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Rush Street Interactive is down 7.4% during the same time and is heading into earnings with an average analyst price target of $15.13 (compared to the current share price of $13.01).
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