DraftKings Q3 Earnings Highlights: NFL In Focus, Will Missouri Legalization Factor Into Guidance?

Sports betting and online gaming company DraftKings Inc (NASDAQ:DKNG) could highlight early results from the 2024 NFL season and new state legalizations when the company reports third-quarter financial results Thursday after market close.

Earnings Estimates: Analysts expect the company to report third-quarter revenue of $1.11 billion, up from last year's third-quarter total of $789.96 million according to data from Benzinga Pro.

The company missed analyst estimates for revenue for the second quarter and two of the past three quarters, but has beaten analyst estimates for revenue in eight of the last 10 quarters overall.

Analysts expect DraftKings to report a loss of 42 cents per share in the third quarter, compared to a loss of 35 cents per share in last year's third quarter. The company has beaten analyst estimates for earnings per share in 10 straight quarters.

Read Also: DraftKings Offers $10K In Prizes For 2024 Election Predictions: Harris, Trump Swing State Performance Among Key Questions

What Analysts Are Saying: Strong market share in the sports betting space and the potential to surprise with updated financial guidance has Bank of America analyst Shaun C. Kelley bullish on DraftKings ahead of the earnings report.

The analyst, who has a Buy rating and $50 price target, recently said revenue flowthrough for the second half of the fiscal year could be better than expected and "protect" EBITDA for fiscal 2024.

"We expect top-line growth in the fourth quarter to come in slightly below guidance driven by unfavorable hold and challenging iGaming comps," Kelley said.

The analyst said ...