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DraftKings (DKNG) Q2 Earnings: What To Expect

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

DKNG Cover Image

Fantasy sports and betting company DraftKings (NASDAQ: DKNG) will be announcing earnings results this Wednesday after market close. Here’s what to expect.

DraftKings missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $1.41 billion, up 19.9% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations and full-year revenue guidance slightly missing analysts’ expectations. It reported 4.3 million users, up 26.5% 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 29.4% year on year to $1.43 billion, improving from the 26.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.

DraftKings Total Revenue

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 21 downward revisions over the last 30 days (we track 23 analysts). 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 Q2 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 22.2%, beating analysts’ expectations by 7.6%, and Churchill Downs reported revenues up 4.9%, topping estimates by 1.4%. Rush Street Interactive traded up 25.7% following the results while Churchill Downs was also up 4.1%.

Read our full analysis of Rush Street Interactive’s results here and Churchill Downs’s results here.

There has been positive sentiment among investors in the gaming solutions segment, with share prices up 2.5% on average over the last month. DraftKings is up 11.1% during the same time and is heading into earnings with an average analyst price target of $53.59 (compared to the current share price of $45.10).

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