Earnings To Watch: DraftKings (DKNG) Reports Q3 Results Tomorrow
DraftKings Inc (NASDAQ: DKNG), a fantasy sports and betting company, will announce its Q3 results this Thursday afternoon. Last quarter, DraftKings exceeded analysts' revenue expectations by 5.9%, with revenues reaching $1.51 billion, a 36.9% increase year over year.
The company also posted a strong quarter overall, beating analysts' adjusted operating income and EBITDA estimates. It reported 3.3 million users, reflecting a 6.5% growth from the previous year.
Analysts' Expectations for Q3
- Revenue growth forecasted at 10.6% year over year to $1.21 billion, a slowdown from 38.7% growth in the same quarter last year.
- Adjusted loss expected to be -$0.26 per share.
- Analysts have largely maintained their estimates over the past 30 days, indicating steady business expectations.
Recent Performance and Industry Context
Over the last two years, DraftKings has missed Wall Street’s revenue estimates five times. Comparatively, peers in the gaming segment have reported promising results this quarter:
- Rush Street Interactive posted a 19.7% year-over-year revenue increase, beating expectations by 4.3%.
- Accel Entertainment reported 9% revenue growth.
"DraftKings beat analysts’ revenue expectations by 5.9% last quarter, reporting revenues of $1.51 billion, up 36.9% year on year."
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Summary: DraftKings posted strong Q2 results and expects slower growth this quarter, facing steady analyst expectations amid competitive industry trends.