DraftKings Inc (NASDAQ:DKNG) shares are trading lower Thursday after the company reported financial results for the second quarter. Shares initially moved higher on the report before reversing course and turning negative. Here’s what you need to know.
What To Know: DraftKings reported second-quarter revenue of $1.51 billion, beating analyst estimates of $1.39 billion, according to Benzinga Pro. The company reported second-quarter adjusted earnings of 38 cents per share, beating estimates of 12 cents per share.
DraftKings affirmed its full-year revenue guidance of $6.2 billion to $6.4 billion versus estimates of $6.28 billion. The company also maintained its full-year Adjusted EBITDA forecast of $800 million to $900 million.
Following the company’s quarterly results, BofA Securities reiterated a Buy rating and price target of $50. The firm said DraftKings’ results were largely in line with its expectations. BofA reiterated a Buy citing “renewed excitement” around the company heading into football season.
Citizens analyst Jordan Bender also maintained a price target of $50 following the print. The analyst views the maintained guidance as a positive and highlighted the strongest quarterly beat in nearly two years.
“Football results will determine actual results for the year and, as we have seen in prior years, could be a material swing in 2H25. We believe management is leaving revenue guidance unchanged to protect the downside in the event of bad outcomes,” Bender wrote in the note.
Needham analysts also maintained a Buy rating after the report with a price target of $60 after favorable sports outcomes proved to be a bigger tailwind than expected.
DraftKings shares traded above $49 in after-hours Wednesday, adding to strong gains over the past three months. The stock may be pulling back on profit-taking. It’s not clear what sparked the reversal in DraftKings shares. For a detailed overview of the company’s earnings call, check out this Benzinga transcript.
DKNG Price Action: DraftKings shares were down 1.32% at $44.76 at the time of publication Thursday, according to Benzinga Pro.
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