Unfavorable Sports Outcomes Have Negatively Affected DraftKings' Outlook: Analyst
Benzinga • 252 days
High Materiality8/10
Information
Needham analyst Bernie McTernan maintained a Buy rating on DraftKings Inc. DKNG and reiterated the $...
Original sourceAI Summary
Needham maintains a Buy rating on DKNG with a $65 price target. DKNG reported Q1 revenue of $1.41B, missing estimates of $1.44B. Full-year revenue guidance was lowered to $6.2B-$6.4B from $6.3B-$6.6B. DKNG’s online sports betting handle grew by 16%, outperforming competitors. Product enhancements in in-play betting are boosting DKNG's performance.
Sentiment Rationale
The revenue and EPS misses, along with lowered guidance, negatively impact investor sentiment. Historical precedents show similar misses often lead to stock price declines.
Trading Thesis
Immediate reactions to Q1 results and guidance typically affect prices in the short-term. Past events demonstrate volatility following earnings reports.
Market-Moving
- Needham maintains a Buy rating on DKNG with a $65 price target.
- DKNG reported Q1 revenue of $1.41B, missing estimates of $1.44B.
- Full-year revenue guidance was lowered to $6.2B-$6.4B from $6.3B-$6.6B.
Key Facts
- Needham maintains a Buy rating on DKNG with a $65 price target.
- DKNG reported Q1 revenue of $1.41B, missing estimates of $1.44B.
- Full-year revenue guidance was lowered to $6.2B-$6.4B from $6.3B-$6.6B.
- DKNG’s online sports betting handle grew by 16%, outperforming competitors.
- Product enhancements in in-play betting are boosting DKNG's performance.
Companies Mentioned
- FLUT (FLUT)
Earnings
The significant earnings miss and guidance revision are crucial for stock valuation. Investor sentiment could be swayed by DKNG’s handle growth despite recent negatives.