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The Zacks Consensus Estimate for revenues is pegged at $702.26 million, indicating an increase of 39.91% from the year-ago quarter’s levels.
The consensus mark for loss has been unchanged in the past 30 days and is pegged at 69 cents per share.
The company’s earnings beat the Zacks Consensus Estimate in three of the last trailing four quarters. DraftKings has a trailing four-quarter earnings surprise of 11.97%, 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.
DKNG’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 $137, up 33% year over year, attributed to an improvement in the company’s structural sportsbook hold rate, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared with the year-ago period. 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. This trend is expected to have continued in the to-be-reported quarter.
The company recorded a positive adjusted EBITDA of $73 million in the second quarter, which exceeded the company’s expectations. This is likely to have continued in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for DraftKings this time around. 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.
DraftKings currently has an Earnings ESP of +17.52% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year quarter’s reported figure.
BILL Holdings (BILL - Free Report) currently has an Earnings ESP of +4.42% and a Zacks Rank #3.
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is scheduled to release third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year quarter’s reported figure.
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DraftKings (DKNG) to Report Q3 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report third-quarter 2023 results on Nov 2.
The Zacks Consensus Estimate for revenues is pegged at $702.26 million, indicating an increase of 39.91% from the year-ago quarter’s levels.
The consensus mark for loss has been unchanged in the past 30 days and is pegged at 69 cents per share.
The company’s earnings beat the Zacks Consensus Estimate in three of the last trailing four quarters. DraftKings has a trailing four-quarter earnings surprise of 11.97%, 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.
DKNG’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 $137, up 33% year over year, attributed to an improvement in the company’s structural sportsbook hold rate, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared with the year-ago period. 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. This trend is expected to have continued in the to-be-reported quarter.
The company recorded a positive adjusted EBITDA of $73 million in the second quarter, which exceeded the company’s expectations. This is likely to have continued in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for DraftKings this time around. 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.
DraftKings currently has an Earnings ESP of +17.52% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +8.11% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year quarter’s reported figure.
BILL Holdings (BILL - Free Report) currently has an Earnings ESP of +4.42% and a Zacks Rank #3.
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is scheduled to release third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.