Fantasy sports and betting company DraftKings (NASDAQ:DKNG) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
DraftKings met analysts’ revenue expectations last quarter, reporting revenues of $1.99 billion, up 42.8% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly. It reported 4.8 million users, flat year on year.
Is DraftKings a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting DraftKings’s revenue to grow 16.8% year on year, slowing from the 19.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. DraftKings has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at DraftKings’s peers in the consumer discretionary - gaming solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 11.3%, and Accel Entertainment reported revenues up 8.5%, topping estimates by 2.3%. Rush Street Interactive traded up 16.6% following the results.
Read our full analysis of Rush Street Interactive’s results here and Accel Entertainment’s results here.
There has been positive sentiment among investors in the consumer discretionary - gaming solutions segment, with share prices up 6% on average over the last month. DraftKings is up 5.5% during the same time and is heading into earnings with an average analyst price target of $34.86 (compared to the current share price of $24.15).
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