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DraftKings (DKNG) to Report Q3 Earnings: What's in Store?
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DraftKings (DKNG - Free Report) is set to report third-quarter 2022 results on Nov 4.
The Zacks Consensus Estimate for revenues is pegged at $436.2 million, indicating an increase of 104.96% from the year-ago quarter’s levels.
The consensus mark for loss has moved north by 1 cent in the past 30 days and is currently pegged at $1.07 per share.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. DraftKings has a trailing four-quarter earnings surprise of 7.48%, on average.
Let’s see how things have shaped prior to this announcement.
Increasing global demand for online gambling and sports betting is expected to have positively impacted DraftKings’ third-quarter performance.
DraftKings is live with mobile sports betting in 17 states that collectively represent approximately 36% of the U.S. population. The company operates iGaming in five states, representing approximately 11% of the U.S. population.
The company’s continuous efforts to expand the functionality and content offering of its Sportsbook product are expected to have driven customer acquisition, engagement, and retention in the to-be-reported quarter.
In the second quarter, Average Revenue per Monthly Unique Payers was $103, up 30% year over year, attributed to strong customer engagement, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared to the same period in 2021. The trend is likely to have continued in the to-be-reported quarter.
The demand for iGaming, such as Roulette and Blackjack, benefited from a spike in user activity. The trend is expected to have continued in the to-be-reported quarter.
DraftKings launched its online sportsbook in Kansas in the to-be-reported quarter. To further expand its reach in the addressable market and strengthen its user base, the company has been continuously working on adding depth to its mobile sports betting and iGaming products.
Key Developments in Q3
Amazon (AMZN - Free Report) selected DraftKings as a sponsor for Thursday Night Football (“TNF”) on Prime Video. The multi-year collaboration between DraftKings and Amazon has enabled fans to engage in pregame content and unique betting offers every Thursday throughout the NFL season, which began on Sep 15, 2022.
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 -6.85% 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.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Image: Bigstock
DraftKings (DKNG) to Report Q3 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report third-quarter 2022 results on Nov 4.
The Zacks Consensus Estimate for revenues is pegged at $436.2 million, indicating an increase of 104.96% from the year-ago quarter’s levels.
The consensus mark for loss has moved north by 1 cent in the past 30 days and is currently pegged at $1.07 per share.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. DraftKings has a trailing four-quarter earnings surprise of 7.48%, on average.
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
Increasing global demand for online gambling and sports betting is expected to have positively impacted DraftKings’ third-quarter performance.
DraftKings is live with mobile sports betting in 17 states that collectively represent approximately 36% of the U.S. population. The company operates iGaming in five states, representing approximately 11% of the U.S. population.
The company’s continuous efforts to expand the functionality and content offering of its Sportsbook product are expected to have driven customer acquisition, engagement, and retention in the to-be-reported quarter.
In the second quarter, Average Revenue per Monthly Unique Payers was $103, up 30% year over year, attributed to strong customer engagement, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared to the same period in 2021. The trend is likely to have continued in the to-be-reported quarter.
The demand for iGaming, such as Roulette and Blackjack, benefited from a spike in user activity. The trend is expected to have continued in the to-be-reported quarter.
DraftKings launched its online sportsbook in Kansas in the to-be-reported quarter. To further expand its reach in the addressable market and strengthen its user base, the company has been continuously working on adding depth to its mobile sports betting and iGaming products.
Key Developments in Q3
Amazon (AMZN - Free Report) selected DraftKings as a sponsor for Thursday Night Football (“TNF”) on Prime Video. The multi-year collaboration between DraftKings and Amazon has enabled fans to engage in pregame content and unique betting offers every Thursday throughout the NFL season, which began on Sep 15, 2022.
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 -6.85% 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
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.