Rush Street Interactive Earnings: What To Look For From RSI

Online casino and sports betting company Rush Street Interactive will be reporting earnings this Wednesday after market hours. Here’s what you need to know. Rush Street Interactive beat analysts’ revenue expectations by 7.6% last quarter, reporting revenues of $269.2 million, up 22.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 197,000 monthly active users, up 20.1% year on year. Is Rush Street Interactive a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.This quarter, analysts are expecting Rush Street Interactive’s revenue to grow 14.8% year on year to $266.4 million, slowing from the 36.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 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 6.4% on average. Looking at Rush Street Interactive’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Churchill Downs delivered year-on-year revenue growth of 8.7%, beating analysts’ expectations by 1.2%, and Nike reported revenues up 1.1%, topping estimates by 6.5%. Churchill Downs traded up 7.5% following the results while Nike was also up 6.5%. Read our full analysis of Churchill Downs’s results here and Nike’s results here.Investors in the consumer discretionary segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Rush Street Interactive is down 13.9% during the same time and is heading into earnings with an average analyst price target of $21.75 (compared to the current share price of $19.28).Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.