We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DraftKings’ second-quarter performance is expected to reflect strong demand for sports betting in the to-be-reported quarter.
Solid demand for online gambling on platforms such as online poker, casino games and lottery is likely to have aided the company’s fourth-quarter performance.
The global market is witnessing a push to legalize online sports betting. In the to-be-reported quarter, DraftKings entered into multiple agreements with the aim to tap the online sports betting market and gain sports fanatics as potential customers. During the period, mobile betting has been launched in several states, allowing DraftKings to gain 1.3 million monthly unique paying customers on average.
Resurgence in sporting events and the return of major sports leagues are anticipated to have increased demand for mobile sports betting. Rising demand for online gambling on platforms such as online poker, casino games and lottery is likely to have fueled the top line.
In the fourth quarter, the Mashantucket Pequot Tribal Nation, Foxwoods Resort Casino and DraftKings launched online and mobile sports betting and online casino in Connecticut. This is anticipated to have driven momentum among Connecticut’s sports fans.
DraftKings, the New Hampshire Lottery and Filotimo Casino & Restaurant also teamed up to expand its retail sports betting in New Hampshire, by opening a sister retail sports betting establishment in Dover. This is expected to have aided the adoption rate of Sportsbook.
Presently, DraftKings is live with mobile sports betting in 15 states that collectively represent 29% of the U.S. population. Moreover, it is live with iGaming in five states, representing approximately 11% of the U.S. population.
During the third quarter, DraftKings expanded mobile and online sports betting in three more states in the United States (Wyoming, Arizona and Connecticut). This is anticipated to have benefited the company’s expansion plans in the to-be-reported quarter.
In third-quarter 2021, the company’s monthly unique payers for the B2C segment increased 31.24% year over year. On average, 1.3 million monthly unique paying customers are engaged with DraftKings during each month of the third quarter. The upside reflected strong unique payer retention and acquisition across Sportsbook and iGaming product offerings into new states. These positives are expected to have continued in the fourth quarter.
Apart from this, the company’s broad content portfolio, owing to partnerships with major sports teams such as Major League Baseball, Chicago Cubs, New York Giants, Colorado Rockies, Philadelphia Eagles and Nashville Predators, is expected to have aided customer wins in the third quarter.
Key Developments in Q4
On Dec 7, DraftKings recently partnered with The National Football League Players Association (NFLPA) and One Team Partners, revealing plans to launch gamified NFT (non-fungible token) collections. The NFT collection will debut on DraftKings Marketplace during the 2022-2023 NFL season.
On Nov 17, DraftKings entered into a new deal with FaZe Clan, becoming the official sports betting, daily fantasy, iGaming and free-to-play partner. Per the deal, DraftKings will appear across FaZe’s digital content ecosystem, increasing the former’s presence in esports.
On Nov 4, the National Basketball Association (NBA) announced the expansion of its multi-year relationship with DraftKings, making it a co-official sports betting partner in the league. The agreement allows DraftKings expansive NBA rights and assets to integrate within its sports betting, daily fantasy sports, iGaming and free-to-play products and promotional offerings.
On Oct 14, DraftKings entered into an agreement with the National Hockey League (NHL) to become the official Sports Betting, Daily Fantasy Sports and iGaming partner in the United States. Complimenting the deal, DraftKings entered into a strategic alliance with Turner Sports, including Bleacher Report to be the exclusive sportsbook and daily fantasy sports provider for their coverage of the NHL.
On Oct 18, Polygon, an Ethereum-based scaling platform onboarding millions to Web 3.0, announced a blockchain collaboration with DraftKings Marketplace — a digital collectibles ecosystem built by DraftKings for mainstream accessibility to support custom NFT drops along with secondary-market transactions.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
DraftKings has an Earnings ESP of -6.71% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:
Cedar Fair (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1. The company is all set to announce its fourth-quarter 2021 results on Feb 16.
PlayAGS (AGS - Free Report) has an Earnings ESP of 5.66% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Mar 10.
AGS is up 15.2% in the past year against the Zacks Gaming industry’s decline of 10.7% and the Consumer Discretionary sector’s fall of 23.1% in the past year.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of +9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 42.7% in the past year against the Zacks Textile – Apparel industry’s decline of 10.7% and the Consumer Discretionary sector’s fall of 23.1%.
Image: Shutterstock
DraftKings (DKNG) to Report Q4 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report fourth-quarter 2021 results on Feb 18.
The Zacks Consensus Estimate for revenues is pegged at $439.5 million, indicating an increase of 36.40% from the year-ago quarter’s levels.
The estimate for earnings is pegged at breakeven against a loss of 82 cents per share in the past 30 days.
Let’s see how things have shaped prior to this announcement.
DraftKings Inc. Price and EPS Surprise
DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote
Factors to Consider
DraftKings’ second-quarter performance is expected to reflect strong demand for sports betting in the to-be-reported quarter.
Solid demand for online gambling on platforms such as online poker, casino games and lottery is likely to have aided the company’s fourth-quarter performance.
The global market is witnessing a push to legalize online sports betting. In the to-be-reported quarter, DraftKings entered into multiple agreements with the aim to tap the online sports betting market and gain sports fanatics as potential customers. During the period, mobile betting has been launched in several states, allowing DraftKings to gain 1.3 million monthly unique paying customers on average.
Resurgence in sporting events and the return of major sports leagues are anticipated to have increased demand for mobile sports betting. Rising demand for online gambling on platforms such as online poker, casino games and lottery is likely to have fueled the top line.
In the fourth quarter, the Mashantucket Pequot Tribal Nation, Foxwoods Resort Casino and DraftKings launched online and mobile sports betting and online casino in Connecticut. This is anticipated to have driven momentum among Connecticut’s sports fans.
DraftKings, the New Hampshire Lottery and Filotimo Casino & Restaurant also teamed up to expand its retail sports betting in New Hampshire, by opening a sister retail sports betting establishment in Dover. This is expected to have aided the adoption rate of Sportsbook.
Presently, DraftKings is live with mobile sports betting in 15 states that collectively represent 29% of the U.S. population. Moreover, it is live with iGaming in five states, representing approximately 11% of the U.S. population.
During the third quarter, DraftKings expanded mobile and online sports betting in three more states in the United States (Wyoming, Arizona and Connecticut). This is anticipated to have benefited the company’s expansion plans in the to-be-reported quarter.
In third-quarter 2021, the company’s monthly unique payers for the B2C segment increased 31.24% year over year. On average, 1.3 million monthly unique paying customers are engaged with DraftKings during each month of the third quarter. The upside reflected strong unique payer retention and acquisition across Sportsbook and iGaming product offerings into new states. These positives are expected to have continued in the fourth quarter.
Apart from this, the company’s broad content portfolio, owing to partnerships with major sports teams such as Major League Baseball, Chicago Cubs, New York Giants, Colorado Rockies, Philadelphia Eagles and Nashville Predators, is expected to have aided customer wins in the third quarter.
Key Developments in Q4
On Dec 7, DraftKings recently partnered with The National Football League Players Association (NFLPA) and One Team Partners, revealing plans to launch gamified NFT (non-fungible token) collections. The NFT collection will debut on DraftKings Marketplace during the 2022-2023 NFL season.
On Nov 17, DraftKings entered into a new deal with FaZe Clan, becoming the official sports betting, daily fantasy, iGaming and free-to-play partner. Per the deal, DraftKings will appear across FaZe’s digital content ecosystem, increasing the former’s presence in esports.
On Nov 4, the National Basketball Association (NBA) announced the expansion of its multi-year relationship with DraftKings, making it a co-official sports betting partner in the league. The agreement allows DraftKings expansive NBA rights and assets to integrate within its sports betting, daily fantasy sports, iGaming and free-to-play products and promotional offerings.
On Oct 14, DraftKings entered into an agreement with the National Hockey League (NHL) to become the official Sports Betting, Daily Fantasy Sports and iGaming partner in the United States. Complimenting the deal, DraftKings entered into a strategic alliance with Turner Sports, including Bleacher Report to be the exclusive sportsbook and daily fantasy sports provider for their coverage of the NHL.
On Oct 18, Polygon, an Ethereum-based scaling platform onboarding millions to Web 3.0, announced a blockchain collaboration with DraftKings Marketplace — a digital collectibles ecosystem built by DraftKings for mainstream accessibility to support custom NFT drops along with secondary-market transactions.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
DraftKings has an Earnings ESP of -6.71% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:
Cedar Fair (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1. The company is all set to announce its fourth-quarter 2021 results on Feb 16.
FUN is up 41.3% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 4.2% and the Consumer Discretionary sector’s fall of 23.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
PlayAGS (AGS - Free Report) has an Earnings ESP of 5.66% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Mar 10.
AGS is up 15.2% in the past year against the Zacks Gaming industry’s decline of 10.7% and the Consumer Discretionary sector’s fall of 23.1% in the past year.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of +9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 42.7% in the past year against the Zacks Textile – Apparel industry’s decline of 10.7% and the Consumer Discretionary sector’s fall of 23.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.