DraftKings Q3 Preview: Record NFL Betting and Market Challenges
DraftKings Inc (NASDAQ:DKNG) is expected to emphasize its moves in prediction markets during the release of its third-quarter financial results on Thursday after market close. Investors and analysts may inquire about the growth prospects of the broader prediction market sector as well.
Competition and Recent Acquisition
The sports betting company might provide insight into its competition with prediction markets and detail a recent acquisition in that area.
Earnings Estimates
- Analysts forecast DraftKings' Q3 revenue at $1.23 billion, up from $1.09 billion in the same quarter last year, according to Benzinga Pro data.
- The company has exceeded revenue expectations in five of the last ten quarters, including Q2 2025.
- EPS is expected at a 40-cent loss per share, wider than the 17-cent loss recorded in Q3 of the previous year.
- DraftKings has surpassed earnings-per-share estimates in nine of the past ten quarters, including the recent second quarter.
Market Sentiment
Bank of America Securities analyst Shaun C. Kelley recently downgraded DraftKings and competitor Flutter Entertainment (NYSE:FLUT) ahead of their earnings announcements.
"DKNG is testing key support levels."
Key Points to Monitor
- Performance against prediction market competitors
- Impact of recent acquisition in prediction markets
- Revenue growth and profitability trends
- Analyst revisions and sector outlook
Author's summary: DraftKings is set to report strong NFL betting-driven revenue growth in Q3, while navigating challenges from prediction market competition and mixed analyst sentiment.