DraftKings (DKNG) to Report Q2 Earnings: What's in Store?
DraftKings DKNG is set to report second-quarter 2020 results on Aug 14.
This will be its first quarterly-earnings release after the company began trading on the Nasdaq on Apr 24, 2020, post completing the previously announced business combination among DraftKings, SBTech and Diamond Eagle Acquisition Corp.
The Zacks Consensus Estimate for revenues currently stands at $70 million. Markedly, old DraftKings reported revenues of $89 million.
The consensus mark for loss has stayed at 15 cents per share over the past 30 days.
DraftKings Inc. Price and EPS Surprise
DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors to Watch
DraftKings’ second-quarter results are expected to have been negatively impacted by coronavirus-led cancellations of major sports leagues and sporting events.
However, an expanding addressable market bodes well for this online sports-betting provider. Moreover, solid demand for iGaming, such as online Blackjack and Roulette, is expected to have benefited from a spike in user activity due to closure of major sporting events.
Launch of online sports betting in Indiana, Iowa, New Hampshire, Pennsylvania, and West Virginia in the previous quarter is expected to have benefited DraftKings’ expansion plans.
New state launches and growing revenues in existing states are expected to have aided the top line. During the to-be-reported quarter, the company launched its online casino product in partnership with Hollywood Casino, an affiliate of Penn National Gaming, in Pennsylvania. The company also began offering online sports betting in Colorado.
However, new product launches and expansions are expected to have hurt profitability in the to-be-reported quarter.
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. But that’s not the case here.
DraftKings has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other companies worth considering as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle:
Agilent Technologies A has an Earnings ESP of +24.73% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autodesk ADSK has an Earnings ESP of +4.44% and is #3 Ranked.
Bill.com BILL has an Earnings ESP of +10.45% and a Zacks Rank #3.
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Autodesk, Inc. (ADSK) : Free Stock Analysis Report
Agilent Technologies, Inc. (A) : Free Stock Analysis Report
Bill.com Holdings, Inc. (BILL) : Free Stock Analysis Report
DraftKings Inc. (DKNG) : Free Stock Analysis Report
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