Earnings To Watch: DraftKings (DKNG) Reports Q3 Results Tomorrow
DraftKings Inc (NASDAQ: DKNG), a fantasy sports and betting company, will release its Q3 earnings this Thursday afternoon. Last quarter, the company exceeded analysts’ revenue expectations by 5.9%, reporting $1.51 billion in revenue, a 36.9% increase year on year.
The quarter was strong overall, with DraftKings surpassing analysts’ adjusted operating income and EBITDA estimates. The company reported 3.3 million users, marking a 6.5% growth compared to the same period last year.
Analysts’ Expectations
- Projected revenue growth for Q3 is 10.6% year on year, reaching $1.21 billion.
- This represents a slowdown from the 38.7% revenue increase recorded in the same quarter last year.
- Adjusted loss is forecasted at -$0.26 per share.
- Analysts have largely maintained their estimates over the past 30 days, anticipating stable performance heading into earnings.
- Over the last two years, DraftKings has missed Wall Street revenue estimates five times.
Industry Peers’ Performance
In the gaming solutions sector, some peers have already reported their Q3 results, providing insight into market trends:
- Rush Street Interactive posted 19.7% year-on-year revenue growth, beating expectations by 4.3%.
- Accel Entertainment reported a 9% increase in revenues.
"DraftKings beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $1.51 billion, up 36.9% year on year."
"DraftKings has missed Wall Street’s revenue estimates five times over the last two years."
Author’s summary: DraftKings approaches its Q3 results with expected slower revenue growth, yet recent strong performance and industry trends suggest ongoing market competitiveness.