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DraftKings (NASDAQ:DKNG) will disclose Q3 earnings earlier than the opening bell on November 4 to expectations for income of $437M to be reported for the quarter and an EPS loss $0.92.
Heading into the DKNG report, shares of DraftKings (DKNG) are down 43% with buying and selling multiples on unprofitable firms being reeled on this yr and nervousness over client discretionary spending coming into the combination. Nevertheless, the latest learn on digital sports activities betting has been decidedly optimistic, highlighted by Caesars Leisure’s (CZR) digital phase performing nicely in Q3 and the latest information from GeoComply indicating geolocation checks for sports activities betting apps are up 68% from a yr in the past for the time period that covers the primary seven weeks of the NFL season.
Roth Capital Companions analyst Edward Engel believes the early read-throughs within the trade level to Q3 income and EBITDA beats for DKNG. Particularly, Engel and staff assume DraftKings will profit from a powerful on-line sports activities betting maintain and decrease degree of promotions.
Financial institution of America anticipates a beat and lift quarter for DKNG, with a lot of the variance to come back all the way down to the maintain share throughout the first three weeks of the NFL season. Crucially, analyst Shaun Kelley thinks DKNG will keep the corporate’s This autumn outlook. Slowing total deal with traits are anticipated to be offset by strong market share beneficial properties for the digital sports activities betting powerhouse. Kelley famous that preliminary 2023 income steerage might be slotted under consensus expectations, however he additionally reminded that DKNG traditionally excludes new states which suggests the steerage might not be straight comparable.
DraftKings (DKNG) has topped income estimates in 8 out of 10 quarters, however has missed on the EPS line the final 3 times it has stepped as much as the earnings batter’s field.
The In search of Alpha Quant Score on DraftKings continues to be at Maintain, however the quant rating is the very best of the rating.
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