DraftKings’ Upcoming Q3 Results Preview

Analysts at Oppenheimer provided their outlook on DraftKings Inc. (NASDAQ:DKNG) ahead of the upcoming Q3 earnings, expecting the company to report better-than-expected revenue figures. Despite the solid start into football, the company continues to trade more on rising interest rates that are penalizing longer-duration assets without near-term earnings.

The analysts attribute higher NGR (Net Gaming Revenue) to (1) stronger NFL holds on favorites struggling to cover and more under-bets hitting, (2) lower promotions, and (3) higher same-game parlay (SGP) adoption.

For fiscal 2023, the company expects revenue/EBITDA of $2.93 billion/($441 million), compared to the Street estimates of $2.83 billion/($434 million).