DraftKings (DKNG) To Report Earnings Tomorrow: Here Is What To Expect
Fantasy sports and betting company DraftKings (NASDAQ:DKNG) will be reporting results tomorrow after market close. Here's what you need to know.
Last quarter DraftKings reported revenues of $790 million, up 57.4% year on year, beating analyst revenue expectations by 12.9%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Is DraftKings buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting DraftKings's revenue to grow 44.6% year on year to $1.24 billion, slowing down from the 80.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing nine downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 9.3%.
Looking at DraftKings's peers in the casinos and gaming segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. MGM Resorts delivered top-line growth of 21.8% year on year, beating analyst estimates by 5.8% and Boyd Gaming reported revenues up 3.4% year on year, exceeding estimates by 2.7%. MGM Resorts was down 2.1%, and Boyd Gaming was up 3.8%.
Read our full analysis of MGM Resorts's results here and Boyd Gaming's results here.
There has been positive sentiment among investors in the casinos and gaming segment, with the stocks up on average 3.2% over the last month. DraftKings is up 26.9% during the same time, and is heading into the earnings with analyst price target of $41.7, compared to share price of $42.7.
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