Yahoo Finance DraftKings (DKNG) Q2 Earnings: What To Expect
Fantasy sports and betting company DraftKings (NASDAQ:DKNG) will be reporting results tomorrow after market close. Here's what you need to know.
DraftKings beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $1.17 billion, up 52.7% year on year. It was a decent quarter for the company, with full-year revenue guidance exceeding analysts' expectations but a miss of analysts' earnings estimates.
Is DraftKings a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting DraftKings's revenue to grow 27.3% year on year to $1.11 billion, slowing from the 87.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. DraftKings has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 8.9% on average.
Looking at DraftKings's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Churchill Downs delivered year-on-year revenue growth of 15.9%, beating analysts' expectations by 3.7%, and Accel Entertainment reported revenues up 5.7%, topping estimates by 2.7%. Churchill Downs's stock price was unchanged following the results.
Read our full analysis of Churchill Downs's results here and Accel Entertainment's results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.8% on average over the last month. DraftKings is down 2.5% during the same time and is heading into earnings with an average analyst price target of $51.8 (compared to the current share price of $36).
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