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].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Flutter Entertainment (FLUT) , which belongs to the Zacks Gaming industry.This online gambling company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 120.70%.For the most recent quarter, Flutter was expected to post earnings of $1 ...

Core Insights - The report by Minimum Deposit Casinos (MDC) highlights the potential impact of the US-China trade war on the global online gambling industry, suggesting that the effects may extend beyond the Asian gambling market [1] - Casino operators with significant operations in Asia, such as Melco Resorts and Las Vegas Sands, have experienced stock price declines of up to 9.8%, while US-based companies like Wynn Resorts and MGM International have also faced notable downturns [1][2] - MDC analysts indicate that the initial impacts are not due to gambling regulations but rather disruptions in technology and finance, which are critical for the survival of online casinos [2] Industry Risks - The report outlines several risks associated with the trade war, including delayed payments, currency fluctuations, tightening financial regulations, and increased operational costs for cloud-based services [2] - While land-based casino stocks may face short-term declines, the online gambling sector could undergo a more prolonged restructuring due to these challenges [2] - MDC remains committed to monitoring industry trends and providing insights as the gambling sector adapts to the rapidly changing global economic landscape [2]

Financial Data and Key Metrics Changes - The company reported record Q4 revenues of $35.3 million, with adjusted EBITDA of $14.7 million and free cash flow of $13.2 million, marking a 9% year-over-year revenue increase driven by casino revenue growth across all regions [6][16] - Full year 2024 revenue increased 17% to a record $127.2 million, with adjusted EBITDA rising 33% year-over-year to $48.7 million [19][20] - Gross profit increased 21% year-over-year to $33.1 million, with gross margin rising from 84% to 94% [17] Business Line Data and Key Metrics Changes - iGaming revenue grew significantly across all operating regions, with strong organic growth and benefits from the Freebets.com acquisition [11] - The acquisition of OzJam and Opticods is expected to drive substantial growth in subscription revenue, projected to account for over 20% of total group revenue [10][21] Market Data and Key Metrics Changes - Revenue in the UK and Ireland grew by 25%, while other Europe saw a 104% increase, and the rest of the world experienced an 81% rise, offsetting a 9% decline in North American revenue [19] - The company anticipates a return to growth in North America for 2025, driven by improved iGaming pricing trends and new state launches [12][21] Company Strategy and Development Direction - The company aims for full year revenue growth of 35% and adjusted EBITDA growth of 40% in 2025, with a long-term goal of generating $100 million in annual adjusted EBITDA [8][21] - Strategic acquisitions are a key focus, with the company successfully integrating new businesses to enhance its market position and drive shareholder value [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges in the sports betting market and highlighted the resilience of the iGaming sector [12][58] - The company remains optimistic about the expansion of iGaming in the U.S. and expects significant top-line and cash flow growth as more states approve iGaming [12][21] Other Important Information - The company repurchased approximately 3 million shares at an average price of $9.06, representing nearly 9% of total outstanding shares [20] - The company expanded its credit facility from $100 million to $165 million, providing increased flexibility for strategic acquisitions [20][21] Q&A Session Summary Question: Insights on customer negotiations and market conditions - Management noted that the supply of traffic is a key driver, and they have successfully navigated challenges in the sports betting market by focusing on iGaming and strategic acquisitions [25][27] Question: Feedback on Optic Odds and market traction - Management indicated that they are optimistic about the international expansion of Optic Odds and its potential to solve critical risk management problems for operators [31][33] Question: Guidance nuances and regional growth - Management highlighted that North America is expected to be the fastest-growing region, driven by a change in traffic source mix and a focus on higher gross margins [39] Question: Capital allocation and stock repurchases - Management confirmed that they received consent to proceed with stock buybacks and will be tactical in their approach, focusing on mispriced stock opportunities [43][44] Question: Opportunities in sweepstakes and prediction markets - Management expressed cautious optimism about sweepstakes and highlighted the potential for prediction markets to grow the overall market [47][49] Question: Impact of higher taxes on the business - Management stated that increased taxes would affect the entire ecosystem but noted that their best clients are Tier two and Tier three operators, who are less impacted [51][52] Question: Organic growth rates and economic resilience - Management indicated that organic growth is expected to be in the low teens, with the industry historically showing resilience during economic downturns [60][58]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 19% and adjusted EBITDA of $482 million, which is 26% higher than the previous year [7][22] - Net income for the quarter was $156 million, with earnings per share increasing by $5.59 to 45 cents [22] - Adjusted EPS, excluding certain fair value movements, increased by 67% due to a tax credit [22] Business Line Data and Key Metrics Changes - In the U.S., revenue increased by 14%, with adjusted EBITDA of $163 million, driven by a 43% growth in iGaming [23][25] - Sportsbook revenue growth was 8%, impacted by adverse sports results and a moderation in handle growth to 12% [23] - International revenue grew by 14%, with adjusted EBITDA increasing by 6% [25] Market Data and Key Metrics Changes - The U.S. sportsbook TGR market share reached 43%, while iGaming TGR market share was 26% [8][9] - In the UK and Italy, the company solidified its number one position, with UKI revenue growth of 20% driven by strong performance in both sportsbook and iGaming [26][17] - India showed a 72% growth on a year-over-two-year basis, while Australia experienced an 8% revenue decline due to a softer racing market [19][27] Company Strategy and Development Direction - The company aims to strengthen its leadership position in the U.S. market and expand into new markets, including the successful launches of FanDuel in North Carolina and Vermont [6][8] - The creation of Flutter Studios is expected to enhance game development capabilities and complement Tier one supplier content [7] - The company plans to repurchase up to $1 billion in shares across 2025, alongside acquisitions to enhance scale and diversification [8][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term business position despite short-term adverse sports results, emphasizing strong pricing and risk management capabilities [10][9] - The company is optimistic about the prospects for FanDuel and expects to materially expand its user base due to market-leading products [20] - Regulatory dynamics in the U.S. are being closely monitored, with management confident in mitigating potential impacts from state gaming tax increases [16][14] Other Important Information - The company is focused on product innovation, with a structural gross revenue margin of 14.5% in the quarter [11] - The introduction of new features and loyalty programs is expected to drive customer engagement and revenue growth [12][13] - The company is preparing for the integration of new acquisitions, including Snai and NSX, to enhance its market presence [19][76] Q&A Session Summary Question: U.S. Guidance and Investment Losses - Management discussed the expected launch of Missouri in Q4 and Alberta in Q1 2026, estimating $90 million in investment losses for new states [38][39] Question: Customer Acquisition Trends - Management noted strong growth in iGaming and emphasized the importance of product innovations in driving customer acquisition [45][46] Question: Italian Lottery Bid - Management confirmed interest in bidding for a second lottery contract in Italy, with ongoing evaluations of the opportunity [48][49] Question: Handle Growth and iGaming - Management clarified that there is no significant shift of players from sports betting to iGaming, attributing strong iGaming performance to product developments [96][97] Question: Tax Rates and Competitive Environment - Management provided insights on the impact of tax increases in Illinois, estimating a $50 million impact in 2024 [61][62] Question: Consumer Weakness Signs - Management indicated no signs of consumer weakness in existing U.S. states, with a focus on leveraging international market lessons [115]