Sports betting company DraftKings Inc (NASDAQ:DKNG) could provide a look at optimism for the sector ahead of the NCAA Football and NFL seasons when the company reports second-quarter financial results Wednesday after market close.
Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.
Check the latest DKNG stock price here.
Earnings Estimates: Analysts expect DraftKings to report second-quarter revenue of $1.40 billion, up from $1.10 billion in last year's second quarter, according to data from Benzinga Pro.
The company has missed analyst estimates for revenue in four straight quarters, while beating estimates in five of the last 10 quarters overall.
Analysts expect the company to report earnings of 12 cents per share, down from earnings of 22 cents per share in past year's second quarter.
The company missed earnings estimates in the last quarter, but has beaten analyst estimates in nine of the past 10 quarters overall.
What Analysts Are Saying: Back in June, Macquarie Equity Research analyst Chad Beynon highlighted DraftKings as a potential winner in the online sports betting sector.
The analyst said DraftKings is one of several companies expected to benefit from strong hold rates in June.
Beynon said the 2025 outlook for the online gaming market remains positive, despite rising tax pressures like a 50-cent per-bet tax in the state of Illinois.
The analyst pointed to three key drivers: strong second-quarter sports betting hold rates, faster growth in betting volume, and better-than-expected gains in iGaming.
DraftKings, with full North American exposure and a leading market share, offers the most upside from further U.S. legalization and potential international growth.
Here are other recent analyst ratings for DraftKings and their price targets:
- Susquehanna: Maintained Positive rating, raised price target from $52 to $60
- Barclays: Maintained Overweight rating, raised price target from $48 to $51
- Stifel: Maintained Buy rating, lowered price target from $53 to $51
- Truist: Maintained Buy rating, raised price target from $50 to $55
Key Items to Watch: The Illinois per-bet tax could be one item to watch, with DraftKings already saying it is passing on the cost to the consumer. DraftKings is also likely to raise bet minimums in some states as a result.
The company's first quarter saw higher customer acquisition thanks to the Jackpocket acquisition, but it also produced lower average revenue per user. As the company integrates this acquisition, it will need to make sure investors and analysts understand the fit and how it could impact results in the coming quarters.
Second quarter results are always a crossroads for DraftKings, as it doesn't include results from the key NCAA Football and NFL seasons that see the heavy volume. Second quarter results could show improvement in diversification among other sports and a look ahead at expectations for the second half of the year.
DraftKings lowered its full-year revenue guidance after first-quarter results. A strong second quarter and high expectations for the second half of the year could see a reversal of that to stronger guidance.
Prediction markets could be a top question from analysts during the company's conference call with the sports betting segment getting disrupted by companies like Polymarket and Kalshi. There was also a report that DraftKings was considering an acquisition in the space.
DKNG Price Action: DraftKings stock was down 0.24% to $44.94 at market close on Tuesday versus a 52-week trading range of $29.29 to $53.61. DraftKings stock is up 23.8% year-to-date in 2025.
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