DraftKings Q3 Preview: Record NFL Betting Expected
DraftKings is expected to emphasize its prediction market developments during the third-quarter results release on Thursday. Analysts and investors are likely to inquire about the growth prospects of the overall prediction market sector.
Company Overview and Market Position
DraftKings Inc (NASDAQ:DKNG), a major sports betting company, may share additional insights on its strategies to compete with prediction markets and discuss its recent acquisition in this area. The company's third-quarter financial results will be reported after market close Thursday.
Earnings Estimates
- Projected third-quarter revenue is $1.23 billion, up from $1.09 billion in the same period last year, according to Benzinga Pro data.
- DraftKings has outperformed revenue estimates in five of the past ten quarters, including the second quarter just reported.
- Analysts forecast a loss of 40 cents per share in Q3, compared to a loss of 17 cents per share a year ago.
- The company has beaten earnings per share estimates in nine of the last ten quarters, including the most recent quarter.
Analyst Insights
Bank of America Securities analyst Shaun C. Kelley downgraded both DraftKings and peer Flutter Entertainment (NYSE:FLUT) ahead of their earnings reports.
DraftKings is currently testing critical support levels in the market.
Key Items to Watch
- How DraftKings’ prediction market integration affects its competitive stance.
- The impact of NFL betting volumes on Q3 results.
- Market reaction to the company’s guidance and financial performance post-earnings release.
Author’s summary: DraftKings is set to report strong NFL betting growth in Q3 while highlighting its moves in prediction markets, with analysts closely watching its competitive positioning and earnings results.