Unfavorable Sports Outcomes Have Negatively Affected DraftKings' Outlook: Analyst

Core Viewpoint - Needham analyst Bernie McTernan maintains a Buy rating on DraftKings Inc. with a price forecast of $65 despite the company missing revenue and earnings estimates for the first quarter [1] Financial Performance - DraftKings reported first-quarter revenue of$1.41 billion, missing the Street consensus estimate of $1.44 billion [1] - The company reported earnings per share of 12 cents, which also fell short of the Street consensus estimate of 22 cents per share [1] Guidance Revision - The company lowered its full-year revenue guidance from a range of$6.3 billion to $6.6 billion to a new range of$6.2 billion to $6.4 billion [2] - Full-year adjusted EBITDA guidance was cut from$900 million to $1.0 billion to a new range of$800 million to $900 million [3] Factors Affecting Performance - Unfavorable sports outcomes negatively impacted the company's first-quarter results, leading to the downward revision of full-year 2025 revenue and adjusted EBITDA guidance [3] - Despite the challenges, the company highlighted strong underlying trends driven by a higher structural hold and efficient use of promotional spending [4] Market Sentiment and Growth - The reported 16$36.57 as of the last check on Friday [6]