DraftKings Inc. (NASDAQ:DKNG) Expected to Announce Earnings of -$0.61 Per Share

Wall Street brokerages expect DraftKings Inc. (NASDAQ:DKNG) to report earnings of ($0.61) per share for the current quarter, according to Zacks Investment Research. Six analysts have made estimates for DraftKings’ earnings, with the lowest EPS estimate coming in at ($0.74) and the highest estimate coming in at ($0.39). DraftKings posted earnings of ($0.22) per share in the same quarter last year, which indicates a negative year over year growth rate of 177.3%. The company is scheduled to announce its next quarterly earnings report before the market opens on Friday, August 6th.

According to Zacks, analysts expect that DraftKings will report full year earnings of ($2.82) per share for the current financial year, with EPS estimates ranging from ($3.26) to ($2.07). For the next financial year, analysts forecast that the firm will report earnings of ($2.33) per share, with EPS estimates ranging from ($3.09) to ($1.10). Zacks Investment Research’s EPS calculations are an average based on a survey of research firms that that provide coverage for DraftKings.

DraftKings (NASDAQ:DKNG) last posted its quarterly earnings results on Friday, May 7th. The company reported ($0.87) EPS for the quarter, missing the Zacks’ consensus estimate of ($0.51) by ($0.36). DraftKings had a negative net margin of 133.84% and a negative return on equity of 49.11%. The firm had revenue of $312.28 million for the quarter, compared to the consensus estimate of $228.34 million.

A number of brokerages have recently issued reports on DKNG. Cannonball Research reaffirmed a “buy” rating and set a $80.00 price target on shares of DraftKings in a report on Friday, May 7th. Guggenheim initiated coverage on shares of DraftKings in a research report on Friday, April 30th. They set a “buy” rating and a $75.00 price objective on the stock. Needham & Company LLC cut their target price on shares of DraftKings from $81.00 to $73.00 and set a “buy” rating for the company in a report on Monday, May 10th. Morgan Stanley dropped their price objective on shares of DraftKings from $63.00 to $58.00 and set an “overweight” rating for the company in a research note on Wednesday, June 2nd. Finally, Oppenheimer initiated coverage on DraftKings in a report on Wednesday, July 7th. They issued a “buy” rating and a $80.00 price objective for the company. Seven analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company. The company presently has an average rating of “Buy” and an average price target of $69.29.

Shares of DraftKings stock traded up $0.12 during trading on Thursday, hitting $49.00. The company’s stock had a trading volume of 289,103 shares, compared to its average volume of 9,848,302. The company has a debt-to-equity ratio of 0.54, a current ratio of 5.03 and a quick ratio of 5.03. The business’s fifty day moving average price is $48.85. The firm has a market capitalization of $19.65 billion, a P/E ratio of -15.84 and a beta of 1.94. DraftKings has a 52 week low of $30.51 and a 52 week high of $74.38.

In related news, Director Shalom Meckenzie sold 660,000 shares of DraftKings stock in a transaction on Thursday, May 27th. The shares were sold at an average price of $50.00, for a total transaction of $33,000,000.00. Following the completion of the transaction, the director now owns 21,728,204 shares of the company’s stock, valued at $1,086,410,200. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Jason Park sold 53,350 shares of the firm’s stock in a transaction on Friday, May 21st. The stock was sold at an average price of $45.18, for a total transaction of $2,410,353.00. Following the completion of the sale, the chief financial officer now owns 341,892 shares of the company’s stock, valued at $15,446,680.56. The disclosure for this sale can be found here. Insiders have sold a total of 2,668,138 shares of company stock worth $130,350,163 in the last quarter. 62.00% of the stock is currently owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Koshinski Asset Management Inc. bought a new stake in DraftKings during the 4th quarter worth approximately $172,000. Alliancebernstein L.P. bought a new position in shares of DraftKings in the 4th quarter worth about $966,000. Panagora Asset Management Inc. purchased a new stake in DraftKings during the 4th quarter valued at about $175,000. Oppenheimer Asset Management Inc. purchased a new stake in DraftKings during the 4th quarter valued at about $214,000. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of DraftKings during the 4th quarter valued at about $239,000. 53.97% of the stock is currently owned by institutional investors.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.

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