Sports Betting Stock Benched on Disappointing Guidance

Core Viewpoint - Flutter Entertainment PLC's stock is experiencing a significant decline due to mixed third-quarter results and lowered full-year guidance, despite beating earnings expectations [1] Financial Performance - Adjusted third-quarter earnings were reported at $1.64 per share, exceeding analysts' expectations of 13 cents per share [1] - Revenue for the third quarter was $3.79 billion, which fell short of estimates [1] Guidance and Market Reaction - The company lowered its full-year guidance, citing "unusually customer-friendly sports outcomes," tax adjustments in Illinois, and regulatory changes in India as contributing factors [1] - Following the announcement, eight analysts reduced their price targets, with Bernstein lowering its target from $321 to $271 [2] - Despite the negative news, the overall sentiment remains bullish, with a 12-month consensus price target of $317.32, indicating a potential 48% upside from current levels [2] Stock Performance - The stock's current decline has ended a five-day winning streak, erasing recent gains [3] - The stock is down 16.8% year-to-date, with the $212 region providing support during the current pullback [3] Options Activity - There is a notable increase in options volume, with FLUT seeing double the typical volume for the day [3] - The most popular options are the November 200 put and the November 230 call, with new positions being opened in the latter [3]