DraftKings Positioned to Beat Q2 Revenue Estimates, Says Analyst

If nation information is any indication, DraftKings (NASDAQ:DKNG) is poised to cover second-quarter revenue estimates. That’s the panorama of Loop Washington analyst Daniel Adam.

In a short letter out earlier this week, Robert Adam evaluated information from states that DraftKings is unrecorded inward that latterly reported monthly 144 gaming revenue (GGR) and familiarised gaming (AGR). He pointed out that the sportsbook operator is trending toward a shell of revenue estimates for the April through June period.

In other words, based on the in style(p) monthly GGR and AGR information releases, we look another ‘beat and raise’ canton from our top side pick, Buy-rated DKNG,” said the analyst.

He analyzed recent AGR and GGR reports from Illinois, Indiana, Iowa, Michigan, New Jersey, and Pennsylvania. DraftKings is also unrecorded with online sports betting inward Colorado, New Hampshire, Tennessee, Virginia, and Rebecca West Virginia.

Adam reiterated a “buy” rating and a $105 toll target on DraftKings stock. That forecast implies the shares testament to a greater extent than stunt woman from the June 24 confining of $51.06.

DraftKings Forecast

The Loop working capital psychoanalyst estimates DraftKings day-after-day revenue is push down just 11 percent on a quarter-to-date basis, substantially supra the 23 percent slump other analysts are calling for.

Some sluggishness inwards Apr through and through June stop is predictable for sportsbook operators because football game — the to the highest degree wagered-on boast in the US, is come out of season. Additionally, there’s no college basketball, and the NBA and NHL seasons are winding down. For the electric current quarter, analysts look DraftKings to turn a loss 57 cents a apportion on revenue of $241.82 million. In its quatern prior earnings reports as a public company, the operator missed earnings per part (EPS) estimates each time.

Even if the day-after-day fantasize sports (DFS) behemoth does scramble second-quarter estimates, at that place are no more guarantees the gillyflower will oppose inward a prescribed fashion. Last month, the Boston-based keep company lifted its 2021 revenue forecast to $1.05 one thousand million to $1.15 1000000000000 from prior estimates of $900 1000000 to $1 billion. However, the shares subsequently slumped.

The once-hot stockpile is sour 31.35 percent from its March highs. But it’s higher past almost 4% o'er the past times week, helped by Loop’s remark and expectations the society will follow single of the winners as single-game betting comes to Canada.

It Could Take a Lot

Assuming DraftKings beats and guides higher as Loop Capital’s disco biscuit is predicting testament happen, it could have an larger-than-life topping of second-quarter estimates and major hike to 2021 counseling to run the stock.

Recently, an array of iGaming and online sportsbook companies upped 2021 guidance, and inwards nearly every instance, the stocks after continued lower.

For DraftKings, rallying on an earnings describe power non boil push down to beating revenue. But rather, showing investors it’s becoming more prudent with marketing spending and that its timeline to profitability is narrowing. That, however, remains to be seen.