DraftKings (NASDAQ:DKNG) Releases Quarterly Earnings Results, Misses Expectations By $0.02 EPS

DraftKings (NASDAQ:DKNG) announced its quarterly earnings results on Thursday. The company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.22 by ($0.02), Briefing.com reports. DraftKings had a net margin of 0.93% and a return on equity of 12.71%. The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the company earned ($0.07) earnings per share. The company’s quarterly revenue was up 16.8% on a year-over-year basis.

DraftKings Price Performance

Shares of DKNG stock traded up $0.30 during trading on Friday, hitting $25.52. The company had a trading volume of 28,551,779 shares, compared to its average volume of 11,618,338. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 2.91. The stock’s 50-day moving average is $23.56 and its two-hundred day moving average is $28.48. The stock has a market capitalization of $12.65 billion, a price-to-earnings ratio of 425.33, a price-to-earnings-growth ratio of 1.20 and a beta of 1.67. DraftKings has a 52 week low of $20.46 and a 52 week high of $48.78.

Key Stories Impacting DraftKings

Here are the key news stories impacting DraftKings this week:

• Positive Sentiment: Revenue for Q1 came in at $1.65 billion, beating Wall Street estimates and rising about 17% year over year, helped by strong betting margins and continued customer engagement. DraftKings shares gain as Q1 revenue tops estimates on strong betting margins
• Positive Sentiment: DraftKings swung to a profit of $21.1 million, a notable improvement from a loss a year ago, suggesting operating leverage is starting to show through. DraftKings Swings to First-Quarter Profit on Better Sportsbook Margins
• Positive Sentiment: BTIG raised its price target on DraftKings to $30 from $28 and kept a buy rating, signaling continued analyst confidence after the earnings release. Benzinga reference
• Neutral Sentiment: Adjusted earnings of $0.20 per share missed estimates by a small margin, which may limit upside until investors see more consistent EPS execution. DraftKings Reports Strong Start To 2026 With Q1 Double Beat
• Neutral Sentiment: The company reiterated full-year revenue guidance of roughly $6.5 billion to $6.9 billion, which was broadly in line with expectations and suggests management remains cautious but stable on the outlook. DraftKings beats profit estimates but guides below views
• Negative Sentiment: Some investors may focus on the earnings miss and the stock’s below-consensus guidance, which could temper enthusiasm after the strong revenue beat. DraftKings (DKNG) Q1 Earnings Lag Estimates

Insider Activity at DraftKings

In related news, CAO Erik Bradbury sold 7,268 shares of the company’s stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $22.50, for a total value of $163,530.00. Following the transaction, the chief accounting officer directly owned 36,736 shares in the company, valued at approximately $826,560. This represents a 16.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Harry Sloan bought 100,000 shares of the business’s stock in a transaction on Tuesday, February 17th. The stock was purchased at an average cost of $21.85 per share, with a total value of $2,185,000.00. Following the purchase, the director owned 350,219 shares of the company’s stock, valued at $7,652,285.15. This represents a 39.96% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold a total of 496,718 shares of company stock valued at $12,477,308 in the last ninety days. 47.18% of the stock is currently owned by company insiders.

Institutional Trading of DraftKings

Several hedge funds and other institutional investors have recently bought and sold shares of DKNG. Viking Global Investors LP purchased a new stake in DraftKings in the third quarter worth approximately $561,125,000. AQR Capital Management LLC boosted its stake in DraftKings by 41.0% in the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after buying an additional 4,788,337 shares in the last quarter. Cadian Capital Management LP boosted its stake in DraftKings by 297.8% in the fourth quarter. Cadian Capital Management LP now owns 5,524,221 shares of the company’s stock worth $190,365,000 after buying an additional 4,135,461 shares in the last quarter. Spruce House Investment Management LLC boosted its stake in DraftKings by 1,301.3% in the fourth quarter. Spruce House Investment Management LLC now owns 4,203,834 shares of the company’s stock worth $144,864,000 after buying an additional 3,903,834 shares in the last quarter. Finally, ARK Investment Management LLC boosted its stake in DraftKings by 32.0% in the fourth quarter. ARK Investment Management LLC now owns 4,540,766 shares of the company’s stock worth $156,475,000 after buying an additional 1,101,850 shares in the last quarter. Hedge funds and other institutional investors own 37.70% of the company’s stock.

Analyst Ratings Changes

DKNG has been the topic of several analyst reports. Bank of America decreased their price target on DraftKings from $37.50 to $30.00 and set a “neutral” rating on the stock in a research report on Friday, February 13th. Guggenheim initiated coverage on DraftKings in a research report on Friday, April 24th. They set a “buy” rating on the stock. Deutsche Bank Aktiengesellschaft cut DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. Northland Securities set a $24.00 price target on DraftKings in a research report on Tuesday, February 17th. Finally, JPMorgan Chase & Co. decreased their price target on DraftKings from $32.00 to $31.00 and set an “overweight” rating on the stock in a research report on Thursday, April 16th. Twenty-seven analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $34.66.

DraftKings Company Profile

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.