DraftKings (NASDAQ:DKNG) Issues Quarterly Earnings Results

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

DraftKings Price Performance

DKNG stock traded down $5.01 during trading on Friday, reaching $18.51. The company’s stock had a trading volume of 69,879,748 shares, compared to its average volume of 11,890,465. DraftKings has a 1 year low of $16.55 and a 1 year high of $36.98. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.22. The company has a market capitalization of $9.19 billion, a P/E ratio of -23.14, a price-to-earnings-growth ratio of 2.86 and a beta of 1.65. The company’s fifty day moving average is $21.51 and its 200-day moving average is $24.06.

DraftKings News Roundup

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

Insider Buying and Selling

In other news, Director Jocelyn Moore sold 10,759 shares of the business’s stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $24.05, for a total value of $258,753.95. Following the transaction, the director directly owned 1,881 shares in the company, valued at $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 Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 47.18% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

DKNG has been the subject of several analyst reports. UBS Group reduced their price objective on DraftKings from $49.00 to $48.00 and set a “buy” rating for the company in a research note on Friday, September 18th. Wall Street Zen downgraded DraftKings from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Bank of America reiterated a “buy” rating on shares of DraftKings in a research report on Friday. Truist Financial cut their price target on DraftKings from $29.00 to $26.00 and set a “buy” rating for the company in a report on Tuesday, October 20th. Finally, Stifel Nicolaus reduced 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. One investment analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, six have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, DraftKings presently has a consensus rating of “Moderate Buy” and a consensus target price of $32.79.

DraftKings Company Profile

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.