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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 2023 results on Aug 3.
The Zacks Consensus Estimate for revenues is pegged at $762.25 million, indicating an increase of 63.51% from the year-ago quarter’s levels.
The consensus mark for loss has moved south by 4 cents in the past 30 days and is currently pegged at 25 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 15.31%, 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.
In the first quarter, the company successfully introduced mobile sports betting services in both Ohio and Massachusetts. The company has managed to capture 7% of the adult population in Ohio and 6% in Massachusetts. This trend is likely to have positively impacted the top line in the quarter to be reported.
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 first quarter, Average Revenue per Monthly Unique Payers was $92, up 37.3% 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. The trend is expected to have continued in the to-be-reported quarter.
The company expects to break even on an adjusted EBITDA basis in the second quarter, supported by fixed costs that are projected to only grow at a single digit rate year over year during the quarter.
DraftKings’ standalone horse racing app is available to residents of 15 states. This application is expected to have positively impacted the top-line performance of 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 +6.60% and carries a Zacks Rank #2. 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.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2 at present.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
Image: Bigstock
DraftKings (DKNG) to Report Q2 Earnings: What's in Store?
DraftKings (DKNG - Free Report) is set to report second-quarter 2023 results on Aug 3.
The Zacks Consensus Estimate for revenues is pegged at $762.25 million, indicating an increase of 63.51% from the year-ago quarter’s levels.
The consensus mark for loss has moved south by 4 cents in the past 30 days and is currently pegged at 25 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 15.31%, 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.
In the first quarter, the company successfully introduced mobile sports betting services in both Ohio and Massachusetts. The company has managed to capture 7% of the adult population in Ohio and 6% in Massachusetts. This trend is likely to have positively impacted the top line in the quarter to be reported.
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 first quarter, Average Revenue per Monthly Unique Payers was $92, up 37.3% 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. The trend is expected to have continued in the to-be-reported quarter.
The company expects to break even on an adjusted EBITDA basis in the second quarter, supported by fixed costs that are projected to only grow at a single digit rate year over year during the quarter.
DraftKings’ standalone horse racing app is available to residents of 15 states. This application is expected to have positively impacted the top-line performance of 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 +6.60% and carries a Zacks Rank #2. 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.
Itron (ITRI - Free Report) has an Earnings ESP of +7.61% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2 at present.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.