Zacks: Brokerages Expect DraftKings Inc. (NASDAQ:DKNG) to Post -$0.61 EPS

Equities analysts expect that DraftKings Inc. (NASDAQ:DKNG) will post ($0.61) earnings per share (EPS) for the current quarter, according to Zacks Investment Research. Six analysts have issued estimates for DraftKings’ earnings. The lowest EPS estimate is ($0.74) and the highest is ($0.39). DraftKings posted earnings per share of ($0.22) during the same quarter last year, which suggests a negative year over year growth rate of 177.3%. The business is expected to report its next quarterly earnings report before the market opens on Friday, August 6th.

On average, analysts expect that DraftKings will report full-year earnings of ($2.82) per share for the current financial year, with EPS estimates ranging from ($3.26) to ($2.07). For the next year, analysts forecast that the company will report earnings of ($2.33) per share, with EPS estimates ranging from ($3.09) to ($1.10). Zacks Investment Research’s EPS averages are an average based on a survey of analysts that that provide coverage for DraftKings.

DraftKings (NASDAQ:DKNG) last announced its quarterly earnings results on Friday, May 7th. The company reported ($0.87) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.51) by ($0.36). The company had revenue of $312.28 million for the quarter, compared to analysts’ expectations of $228.34 million. DraftKings had a negative net margin of 133.84% and a negative return on equity of 49.11%.

A number of research firms have commented on DKNG. Argus decreased their target price on shares of DraftKings from $78.00 to $60.00 and set a “buy” rating on the stock in a research note on Monday, May 24th. Cowen upgraded shares of DraftKings from a “market perform” rating to an “outperform” rating and set a $70.00 price target on the stock in a research report on Monday, May 3rd. Craig Hallum reduced their price target on shares of DraftKings from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Monday, May 10th. Needham & Company LLC reduced their price target on shares of DraftKings from $81.00 to $73.00 and set a “buy” rating on the stock in a research report on Monday, May 10th. Finally, Morgan Stanley dropped their price objective on shares of DraftKings from $63.00 to $58.00 and set an “overweight” rating for the company in a research note on Wednesday, June 2nd. Seven analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $69.29.

In other DraftKings news, insider Matthew Kalish sold 57,692 shares of the company’s stock in a transaction that occurred on Friday, June 11th. The stock was sold at an average price of $53.68, for a total value of $3,096,906.56. Following the sale, the insider now owns 1,759,353 shares in the company, valued at approximately $94,442,069.04. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Jason Robins sold 333,333 shares of the stock in a transaction on Friday, May 14th. The shares were sold at an average price of $44.08, for a total value of $14,693,318.64. Following the completion of the transaction, the insider now directly owns 5,165,734 shares of the company’s stock, valued at $227,705,554.72. The disclosure for this sale can be found here. Insiders sold 2,668,138 shares of company stock valued at $130,350,163 over the last quarter. 62.00% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of DKNG. JPMorgan Chase & Co. raised its stake in DraftKings by 2,028.7% in the 1st quarter. JPMorgan Chase & Co. now owns 4,852,596 shares of the company’s stock valued at $297,610,000 after purchasing an additional 4,624,640 shares during the last quarter. ARK Investment Management LLC acquired a new position in DraftKings in the 1st quarter valued at $268,345,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of DraftKings in the 1st quarter worth $211,263,000. Sumitomo Mitsui Trust Holdings Inc. increased its stake in shares of DraftKings by 685.7% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 3,904,822 shares of the company’s stock worth $239,483,000 after acquiring an additional 3,407,857 shares during the last quarter. Finally, Nikko Asset Management Americas Inc. acquired a new stake in shares of DraftKings in the 1st quarter worth $208,802,000. 53.97% of the stock is owned by hedge funds and other institutional investors.

Shares of DKNG traded up $0.12 on Thursday, reaching $49.00. The company’s stock had a trading volume of 289,103 shares, compared to its average volume of 9,848,302. The company has a quick ratio of 5.03, a current ratio of 5.03 and a debt-to-equity ratio of 0.54. The stock has a market capitalization of $19.65 billion, a PE ratio of -15.84 and a beta of 1.94. The company’s 50 day moving average price is $48.85. DraftKings has a 12-month low of $30.51 and a 12-month high of $74.38.

About DraftKings

DraftKings Inc operates as a digital sports entertainment and gaming company in the United States. It operates through two segments, Business-to-Consumer and Business-to-Business. The company provides users with daily sports, sports betting, and iGaming opportunities. It is also involved in the design, development, and licensing of sports betting and casino gaming platform software for online and retail sportsbook, and casino gaming products.

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