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DraftKings (DKNG) to Report Q2 Earnings: What's in Store?
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DraftKings (DKNG - Free Report) is set to report second-quarter 2022 results on Aug 5.
The Zacks Consensus Estimate for revenues is pegged at $438.2 million, indicating an increase of 47.25% from the year-ago quarter’s levels.
The consensus mark for loss has moved south by 1 cent in the past 30 days and is currently pegged at 87 cents per share.
The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. DraftKings has a trailing four-quarter negative earnings surprise of 9.3%, 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’ second-quarter performance.
DraftKings is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming in five states through its DraftKings brand as well as Golden Nugget Online Gaming, an award-winning iGaming product and iconic gaming brand, in three states.
For the first quarter, DraftKings reported revenues of $417 million, an increase of 34% year over year. Revenues for the company’s B2C segment grew to $404 million, up 44% year over year.
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.
In the to-be-reported quarter, the company launched its online sportsbook and online casino products in Ontario, Canada with a top-rated sportsbook app as well as more than 130 online casino game variations through DraftKings Casino such as baccarat, blackjack, roulette and slots. This is expected to have boosted top-line growth in the second 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.
In the to-be-reported quarter, DraftKings is expected to have witnessed strong growth in its B2C business, driven by payer acquisition and retention as well as player engagement and monetization.
In the first quarter, the company’s monthly unique payers (MUPs) increased 29% year over year. On average, 2 million monthly unique paying customers are engaged with DraftKings during each month of the first quarter.
Average Revenue per MUP (ARPMUP) was $67 in the first quarter of 2022, up 11% year over year, driven by strong customer engagement, a continued revenue mix shift into iGaming products and an increase in DFS activity on a per MUP basis. This trend is likely to have continued in the to-be-reported quarter.
Key Developments in Q2
In June, the company announced the addition of four new shows to its programming slate. Joining this lineup are Too Many Men featuring hockey analysts Alison Lukan, Shayna Goldman and Sara Civian, The Cooligans with soccer-loving comedians Alexis Guerreros and Christian Polanco, definitive college football shows, Shutdown Fullcast, hosted by Spencer Hall, Holly Anderson, Jason Kirk and Ryan Nanni and DNF (Did Not Finish), an F1 program with Meadowlark’s Jessica Smetana and Spencer Hall.
DraftKings announced the completion of its acquisition of Golden Nugget Online Gaming, Inc. The company will leverage Golden Nugget’s established brand to broaden its reach into new customer segments and enhance the combined company’s iGaming product offerings through DraftKings’ vertically-integrated tech stack and Golden Nugget Online Gaming’s unique capabilities, including Live Dealer.
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.
DraftKings has an Earnings ESP of +1.29% and carries a Zacks Rank #2, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
MRC Global (MRC - Free Report) , Alcon (ALC - Free Report) and Grocery Outlet (GO - Free Report) are some other stocks, which also have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has an Earnings ESP of +30.27% and a Zacks Rank #1 at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.
Alcon has an Earnings ESP of +5.07% and a Zacks Rank #1. The company is scheduled to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Grocery Outlet has an Earnings ESP of +5.62% and sports a Zacks Rank #1. The company is slated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
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DraftKings (DKNG) to Report Q2 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report second-quarter 2022 results on Aug 5.
The Zacks Consensus Estimate for revenues is pegged at $438.2 million, indicating an increase of 47.25% from the year-ago quarter’s levels.
The consensus mark for loss has moved south by 1 cent in the past 30 days and is currently pegged at 87 cents per share.
The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. DraftKings has a trailing four-quarter negative earnings surprise of 9.3%, 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’ second-quarter performance.
DraftKings is a multi-channel provider of sports betting and gaming technologies, powering sports and gaming entertainment for operators in 17 countries. The company operates iGaming in five states through its DraftKings brand as well as Golden Nugget Online Gaming, an award-winning iGaming product and iconic gaming brand, in three states.
For the first quarter, DraftKings reported revenues of $417 million, an increase of 34% year over year. Revenues for the company’s B2C segment grew to $404 million, up 44% year over year.
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.
In the to-be-reported quarter, the company launched its online sportsbook and online casino products in Ontario, Canada with a top-rated sportsbook app as well as more than 130 online casino game variations through DraftKings Casino such as baccarat, blackjack, roulette and slots. This is expected to have boosted top-line growth in the second 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.
In the to-be-reported quarter, DraftKings is expected to have witnessed strong growth in its B2C business, driven by payer acquisition and retention as well as player engagement and monetization.
In the first quarter, the company’s monthly unique payers (MUPs) increased 29% year over year. On average, 2 million monthly unique paying customers are engaged with DraftKings during each month of the first quarter.
Average Revenue per MUP (ARPMUP) was $67 in the first quarter of 2022, up 11% year over year, driven by strong customer engagement, a continued revenue mix shift into iGaming products and an increase in DFS activity on a per MUP basis. This trend is likely to have continued in the to-be-reported quarter.
Key Developments in Q2
In June, the company announced the addition of four new shows to its programming slate. Joining this lineup are Too Many Men featuring hockey analysts Alison Lukan, Shayna Goldman and Sara Civian, The Cooligans with soccer-loving comedians Alexis Guerreros and Christian Polanco, definitive college football shows, Shutdown Fullcast, hosted by Spencer Hall, Holly Anderson, Jason Kirk and Ryan Nanni and DNF (Did Not Finish), an F1 program with Meadowlark’s Jessica Smetana and Spencer Hall.
DraftKings announced the completion of its acquisition of Golden Nugget Online Gaming, Inc. The company will leverage Golden Nugget’s established brand to broaden its reach into new customer segments and enhance the combined company’s iGaming product offerings through DraftKings’ vertically-integrated tech stack and Golden Nugget Online Gaming’s unique capabilities, including Live Dealer.
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.
DraftKings has an Earnings ESP of +1.29% and carries a Zacks Rank #2, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
MRC Global (MRC - Free Report) , Alcon (ALC - Free Report) and Grocery Outlet (GO - Free Report) are some other stocks, which also have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has an Earnings ESP of +30.27% and a Zacks Rank #1 at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.
Alcon has an Earnings ESP of +5.07% and a Zacks Rank #1. The company is scheduled to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Grocery Outlet has an Earnings ESP of +5.62% and sports a Zacks Rank #1. The company is slated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.