DraftKings (NASDAQ:DKNG) Announces Earnings Results

DraftKings (NASDAQ:DKNG) announced its earnings results on Thursday. The company reported ($0.53) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.41) by ($0.12), Briefing.com reports. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.39 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 11.26%. The firm’s revenue was up 16.2% compared to the same quarter last year. During the same period last year, the business posted ($0.26) EPS.

DraftKings Stock Performance

DraftKings stock traded down $5.01 during midday trading on Friday, hitting $18.51. 69,879,748 shares of the company were exchanged, compared to its average volume of 11,890,465. The firm has a market capitalization of $9.19 billion, a PE ratio of -23.14, a price-to-earnings-growth ratio of 2.86 and a beta of 1.65. DraftKings has a fifty-two week low of $16.55 and a fifty-two week high of $36.98. The business has a fifty day simple moving average of $21.51 and a two-hundred day simple moving average of $24.06. The company has a debt-to-equity ratio of 3.22, a quick ratio of 1.02 and a current ratio of 1.02.

Insider Transactions at DraftKings

In other DraftKings news, Director Jocelyn Moore sold 10,759 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the completion of the transaction, the director directly owned 1,881 shares of the company’s stock, valued at approximately $45,238.05. The trade was a 85.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 47.18% of the company’s stock.

Trending Headlines about DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue grew 16.2% year over year to $1.33 billion, and management sees prediction markets as a potential growth driver, forecasting as much as $750 million in revenue from the business in 2027. Article: DraftKings Stock Dives on Q3 Miss, Lower Guidance
• Negative Sentiment: Third-quarter results missed expectations: revenue was $1.329 billion versus roughly $1.39 billion expected, while the loss of $0.53 per share was deeper than analysts’ forecast. Article: DraftKings shares plunge as earnings miss and 2027 outlook disappoints
• Negative Sentiment: DraftKings cut its 2026 revenue outlook to $6.35 billion–$6.55 billion from $6.5 billion–$6.9 billion. Reports also characterized its initial 2027 outlook as disappointing, adding to concerns about near-term growth and profitability. Article: DraftKings Cuts Outlook as It Pours More Money Into Prediction Markets
• Negative Sentiment: Investors appear concerned that substantial spending to build the prediction-markets business could weigh on margins and delay profits. Reports of Senator Elizabeth Warren probing the product add regulatory uncertainty. Article: DraftKings Investors Disappointed by Prediction Market Investment Article: Elizabeth Warren Is Probing DraftKings’ Product

Wall Street Analyst Weigh In

DKNG has been the subject of a number of research reports. Stifel Nicolaus lowered their price target on DraftKings from $36.00 to $32.00 and set a “buy” rating for the company in a research report on Monday, October 26th. Moffett Nathanson reissued a “neutral” rating and issued a $22.00 price objective on shares of DraftKings in a report on Thursday, October 22nd. Morgan Stanley reduced their price objective on DraftKings from $36.00 to $31.00 and set an “overweight” rating for the company in a research note on Monday, October 19th. Citigroup reduced their price objective on DraftKings from $32.00 to $28.00 and set a “buy” rating for the company in a research note on Monday, October 12th. Finally, Needham & Company LLC decreased their target price on DraftKings from $35.00 to $30.00 and set a “buy” rating for the company in a report on Monday, November 2nd. One analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, six have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and a consensus price target of $32.79.

About DraftKings

DraftKings Inc is a digital sports entertainment and gaming company that operates online and mobile platforms for sports betting, casino gaming and daily fantasy sports. Its offerings include the DraftKings Sportsbook, DraftKings Casino and daily fantasy contests covering a range of professional and collegiate sports.

The company also provides related entertainment and media content through DraftKings Network, along with free-to-play games, promotions and other interactive products designed to complement its sports and gaming platforms.