Key Points

  • Steady Loss Estimates: Loss estimates per share remained stable at 69 cents, showcasing consistency.
  • Earnings Surprise: DraftKings boasts a four-quarter earnings surprise average of 11.97%, proving its reliability.
  • Upward Revisions: Over the past three months, EPS and revenue estimates have seen significant upward revisions.
  • Market Outperformance: DraftKings' stock has consistently outperformed broader market indices, a trend to watch

As the online gambling and sports betting industry continues its meteoric rise, DraftKings, a key player in the field, is set to report its Q3 earnings. What can investors expect from this rapidly evolving company that's been making waves in the online gambling world?

Analysts are looking at a 39.91% year-over-year revenue increase for DraftKings in Q3. The Zacks Consensus Estimate pegs their revenues at approximately $702.26 million. This is a significant boost from the same quarter last year, underlining the remarkable growth in this sector.

The Q3 is Here

Over the past month, the consensus estimate for losses per share has remained stable at 69 cents. DraftKings has been consistent in meeting or exceeding these estimates in recent quarters, boasting a four-quarter earnings surprise average of 11.97%. This level of consistency is noteworthy and suggests a potential advantage for the company.

DraftKings has proven itself capable of surpassing expectations with an impressive track record. But can this trend continue into Q3? Investors and industry observers are keen to find out.

The consensus EPS estimate for the upcoming report is -$0.60, while the revenue estimate is $699.71 million. These figures will be under scrutiny when DraftKings releases its results.

In the past year, DraftKings has outperformed expectations, beating EPS estimates 50% of the time and revenue estimates a perfect 100% of the time. This could indicate a strong trend that the company aims to uphold.

Positive Revisions

Over the last three months, EPS estimates have seen ten upward revisions and none going down, showcasing strong optimism among analysts. On the revenue side, there have been 20 upward revisions and no downward movements. This positive sentiment is a promising sign for the company's performance.

Market Outperformance The stock market has been roaring, and DraftKings has been a standout player in this rally. The company's stock has vastly outperformed broader market indices, attracting the attention of investors eager to ride this wave.

DraftKings is expected to have benefited from the growing demand for online gambling and sports betting globally. The company has worked diligently to enhance its Sportsbook product, resulting in greater customer engagement and retention. In the previous quarter, they recorded Average Revenue per Monthly Unique Payers of $137, up 33% year over year. Factors contributing to this growth included an improvement in the sportsbook hold rate, a shift towards DraftKings’ sportsbook and iGaming products, and reduced promotional intensity.

The trend in iGaming, driven by user activity in games like Roulette and Blackjack, is also likely to have continued in the Q3 report.

DraftKings surprised investors by recording positive adjusted EBITDA of $73 million in the second quarter. This exceeded the company’s expectations, indicating strong financial performance that's expected to carry through to the upcoming report.

As DraftKings releases its Q3 earnings, the focus will be on whether they can maintain their robust growth, continue to exceed expectations, and deliver a strong financial performance in a dynamic and rapidly expanding industry.

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About DraftKings Inc.

  • Ticker DKNG
  • Exchange NASDAQ
  • Sector Consumer Cyclical
  • Industry Gambling
  • Shares Outstandng 448,545,984
  • Market Cap $19.6B
  • Description
  • DraftKings Inc. operates a digital sports entertainment and gaming company. It offers multi-channel sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming through its DraftKings brand in 5 states, as well as operates Golden Nugget Online Gaming, an iGaming prod...
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