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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 2020 results on Nov 13.
This will be its second quarterly earnings release after the company began trading on the Nasdaq on Apr 24, 2020, post completing the previously announced business combination among DraftKings, SBTech and Diamond Eagle Acquisition Corp.
The Zacks Consensus Estimate for revenues currently stands at $132.2 million.
The consensus mark for loss has widened from 48 cents to 64 cents per share over the past 30 days.
Let’s see how things are shaping up for this announcement.
DraftKings’ third-quarter results are expected to have benefited from the resumption of sporting events and the return of major sports league despite the coronavirus-induced headwinds.
Moreover, an expanding addressable market bodes well for this online sports-betting provider. Additionally, solid demand for iGaming, such as online Blackjack and Roulette, is expected to have benefited from a spike in user activity due to the closure of major sporting events.
Notably, the return of Live Sports like Golf, European Soccer, NASCAR and UFC along with the return of Major League Baseball (MLB), the NBA and the NHL is expected to have driven demand for the company’s sports betting products and contributed to the top line.
Launch of online sports betting in Colorado in the last reported quarter and in Illinois and Manchester in the to-be-reported quarter is expected to have benefited DraftKings’ expansion plans. Notably, Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia are some of the states that have approved online sports betting.
In July, DraftKings’ launched its Casino Product Suite in West Virginia and Pennsylvania, which is expected to have attracted new customers and driven user acquisition.
It also inked partnerships with major U.S. Sports league like Premier Lacrosse League (PLL) and New York Giants and extended its relationship with MLB by entering into a multi-year deal, which makes DraftKings their exclusive Daily Fantasy Sports Partner.
Additionally, similar partnerships with Chicago Cubs, Disney’s (DIS - Free Report) ESPN and sports icon, Michael Jordan, are expected to have strengthened the company’s existing partner base and driven customer engagement on its sports-betting platform.
Notably, in the second quarter, the company’s Monthly Unique Payers (MUPs) declined 35% year over year to 295,000 due to disruptions in the sports calendar led by the coronavirus outbreak. However, resumption in the major sports schedules is likely to have driven MUP growth in the to-be-reported quarter.
New state launches and growing revenues in existing states are expected to have aided the top line. Moreover, growing demand for online gambling on digital platforms like online poker, casino games and lottery is expected to have driven revenues.
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 -0.26% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here is a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Beacon Roofing Supply (BECN - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
DraftKings (DKNG) to Report Q3 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report third-quarter 2020 results on Nov 13.
This will be its second quarterly earnings release after the company began trading on the Nasdaq on Apr 24, 2020, post completing the previously announced business combination among DraftKings, SBTech and Diamond Eagle Acquisition Corp.
The Zacks Consensus Estimate for revenues currently stands at $132.2 million.
The consensus mark for loss has widened from 48 cents to 64 cents per share over the past 30 days.
Let’s see how things are shaping up for this announcement.
DraftKings Inc. Price and EPS Surprise
DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote
Factors to Watch
DraftKings’ third-quarter results are expected to have benefited from the resumption of sporting events and the return of major sports league despite the coronavirus-induced headwinds.
Moreover, an expanding addressable market bodes well for this online sports-betting provider. Additionally, solid demand for iGaming, such as online Blackjack and Roulette, is expected to have benefited from a spike in user activity due to the closure of major sporting events.
Notably, the return of Live Sports like Golf, European Soccer, NASCAR and UFC along with the return of Major League Baseball (MLB), the NBA and the NHL is expected to have driven demand for the company’s sports betting products and contributed to the top line.
Launch of online sports betting in Colorado in the last reported quarter and in Illinois and Manchester in the to-be-reported quarter is expected to have benefited DraftKings’ expansion plans. Notably, Indiana, Iowa, New Hampshire, Pennsylvania and West Virginia are some of the states that have approved online sports betting.
In July, DraftKings’ launched its Casino Product Suite in West Virginia and Pennsylvania, which is expected to have attracted new customers and driven user acquisition.
It also inked partnerships with major U.S. Sports league like Premier Lacrosse League (PLL) and New York Giants and extended its relationship with MLB by entering into a multi-year deal, which makes DraftKings their exclusive Daily Fantasy Sports Partner.
Additionally, similar partnerships with Chicago Cubs, Disney’s (DIS - Free Report) ESPN and sports icon, Michael Jordan, are expected to have strengthened the company’s existing partner base and driven customer engagement on its sports-betting platform.
Notably, in the second quarter, the company’s Monthly Unique Payers (MUPs) declined 35% year over year to 295,000 due to disruptions in the sports calendar led by the coronavirus outbreak. However, resumption in the major sports schedules is likely to have driven MUP growth in the to-be-reported quarter.
New state launches and growing revenues in existing states are expected to have aided the top line. Moreover, growing demand for online gambling on digital platforms like online poker, casino games and lottery is expected to have driven revenues.
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 -0.26% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here is a couple of companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Spectrum Brand Holdings (SPB - Free Report) has an Earnings ESP of +9.24% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Beacon Roofing Supply (BECN - Free Report) has an Earnings ESP of +3.38% and a Zacks Rank #2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>