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What's in the Offing for DraftKings' (DKNG) Q3 Earnings?

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DraftKings (DKNG - Free Report) is set to report third-quarter 2021 results on Nov 5.

The Zacks Consensus Estimate for revenues is pegged at $224.9 million, indicating an increase of 69.3% from the year-ago period’s reported figure.

The consensus mark for a loss of $1.10 per share has been widened from $1.07 per share over the past 30 days.

Let’s see how things have shaped prior to this announcement.

DraftKings Inc. Price and EPS Surprise

 

DraftKings Inc. Price and EPS Surprise

DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote

Factors to Consider

DraftKings is expected to have continued benefiting from the growing demand for mobile 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 third-quarter performance.

The growing momentum across iGaming is likely to have been another major positive. Expanding iGaming product offerings across the states are expected to have contributed well.

Notably, the company added a game, namely DraftKings Rocket, to the DraftKings Casino product suite. This is expected to have delivered an enhanced iGaming experience to customers in the to-be-reported quarter.

We believe that strength in iGaming is likely to have improved DraftKings’ competitive prowess against the likes of Capcom and Boyd Gaming (BYD - Free Report) .

Increasing customer engagement across Sportsbook is expected to have been another positive, bolstering user acquisition rate of the company in the quarter under review.

DraftKings unveiled its online Sportsbook in Arizona in the third quarter. This is expected to have driven its momentum among Arizona’s sports fans.

The company rolled out online Sportsbook in Wyoming, which is anticipated to have aided the adoption rate of Sportsbooks.

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.

Further, the impacts of DraftKings’ partnerships with media companies like DISH Network , ESPN and Turner Sports — a subsidiary of AT&T's (T - Free Report) WarnerMedia — are likely to get reflected in its upcoming results.

Currently, DraftKings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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