DraftKings (DKNG) Reports Q4 Loss, Misses Revenue Estimates

Group 1 - DraftKings reported a quarterly loss of $0.28 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.19, and compared to a loss of $0.10 per share a year ago, indicating an earnings surprise of -47.37% [1] - The company posted revenues of $1.39 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.21%, and this represents an increase from year-ago revenues of $1.23 billion [2] - Over the last four quarters, DraftKings has surpassed consensus EPS estimates only once, and it has topped consensus revenue estimates just once as well [2] Group 2 - DraftKings shares have increased by approximately 22.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors to assess future stock performance [4] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.52 billion, and for the current fiscal year, it is $0.43 on revenues of $6.4 billion [7] Group 3 - The Zacks Industry Rank indicates that the Gaming industry is currently in the top 16% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for DraftKings is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]