Fantasy sports and betting company DraftKings (NASDAQ: DKNG) will be announcing earnings results tomorrow afternoon. Here’s what investors should know.
DraftKings missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.39 billion, up 13.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates. It reported 4.8 million users, up 37.1% year on year.
Is DraftKings a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting DraftKings’s revenue to grow 24.1% year on year to $1.46 billion, slowing from the 52.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.
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. DraftKings has missed Wall Street’s revenue estimates six times over the last two years.
Looking at DraftKings’s peers in the 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 20.7%, beating analysts’ expectations by 0.5%, and Accel Entertainment reported revenues up 7.3%, topping estimates by 1.6%. Rush Street Interactive traded down 5.4% following the results while Accel Entertainment was up 4.7%.
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 gaming solutions segment, with share prices up 12.7% on average over the last month. DraftKings is up 6.1% during the same time and is heading into earnings with an average analyst price target of $54.14 (compared to the current share price of $33.85).
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