Earnings To Watch: DraftKings (DKNG) Reports Q3 Results Tomorrow
DraftKings Inc (NASDAQ: DKNG), a fantasy sports and betting company, will report its Q3 results this Thursday afternoon. The company posted strong results last quarter, exceeding analysts' revenue expectations by 5.9% with revenues of $1.51 billion, marking a 36.9% increase year over year.
Last quarter's performance also included a solid beat on analysts' adjusted operating income estimates and an impressive outperformance of EBITDA forecasts. DraftKings reported 3.3 million users, which is a 6.5% growth compared to the same period last year.
Analysts' Expectations for Q3
- Expected revenue growth: 10.6% year on year to $1.21 billion
- Growth slowdown compared to 38.7% revenue increase last year
- Adjusted loss forecast: -$0.26 per share
Analysts have mostly maintained their estimates over the past 30 days, indicating confidence that DraftKings will maintain its current trajectory heading into earnings.
Past Performance and Industry Context
Over the last two years, DraftKings has missed Wall Street's revenue estimates five times. Examining peers in the gaming solutions sector offers some insight into expectations:
- Rush Street Interactive posted 19.7% year-on-year revenue growth, surpassing analyst projections 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.
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.
Author's summary: DraftKings approaches Q3 earnings with expectations of slower revenue growth but steady analyst confidence, following a strong previous quarter and mixed sector performance.