DraftKings (DKNG) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates DraftKings (DKNG) will report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - DraftKings is expected to post quarterly earnings of $0.18 per share, reflecting a year-over-year increase of +160% [3]. - Revenues are projected to reach $1.42 billion, representing a 21.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 24.36% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [8]. Historical Performance - DraftKings has only beaten consensus EPS estimates once in the last four quarters, with a notable surprise of -47.37% in the last reported quarter [12][13]. Conclusion - DraftKings does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].