Financial News

DraftKings (DKNG) To Report Earnings Tomorrow: Here Is What To Expect

DKNG Cover Image

Fantasy sports and betting company DraftKings (NASDAQ:DKNG) will be reporting results tomorrow afternoon. Here’s what you need to know.

DraftKings met analysts’ revenue expectations last quarter, reporting revenues of $1.10 billion, up 26.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ operating margin estimates and full-year revenue guidance exceeding analysts’ expectations.

Is DraftKings a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting DraftKings’s revenue to grow 40.7% year on year to $1.11 billion, slowing from the 57.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.24 per share.

DraftKings Total Revenue

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. DraftKings has missed Wall Street’s revenue estimates twice over the last two years.

Looking at DraftKings’s peers in the gaming solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 36.6%, beating analysts’ expectations by 11.9%, and PlayStudios reported a revenue decline of 6.1%, topping estimates by 3.9%. Rush Street Interactive’s stock price was unchanged after the resultswhile PlayStudios was up 5.1%.

Read our full analysis of Rush Street Interactive’s results here and PlayStudios’s results here.

There has been positive sentiment among investors in the gaming solutions segment, with share prices up 3.3% on average over the last month. DraftKings is down 2.3% during the same time and is heading into earnings with an average analyst price target of $49.94 (compared to the current share price of $36.65).

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