DraftKings Inc. (DKNG): Earnings Estimates and Zacks Rank #3 (Hold)

DraftKings (DKNG) has recently been on Zacks.com's list of the most searched stocks. Over the past month, shares have returned -0.2%, compared to the Zacks S&P 500 composite's +2.7% change. The company's earnings estimates have changed by -1.9% for the current quarter, -1.2% for the current fiscal year, and +0.5% for the next fiscal year. The Zacks Rank for DraftKings is #3 (Hold), based on the size of the recent change in the consensus estimate and three other factors related to earnings estimates.

DraftKings (DKNG) has recently gained significant attention, appearing on Zacks.com's list of the most searched stocks. Over the past month, shares of the company have experienced a slight decline of -0.2%, compared to the Zacks S&P 500 composite's +2.7% increase. This performance was driven by various factors, including changes in earnings estimates and industry trends.

The company's earnings estimates have seen notable revisions. For the current quarter, the consensus estimate has changed by -1.9%, indicating a slight downward revision. Over the current fiscal year, the estimate has decreased by -1.2%, while the next fiscal year estimate has increased by +0.5%. These changes reflect the evolving expectations of sell-side analysts, who are taking into account the latest business trends.

The Zacks Rank for DraftKings is currently #3 (Hold), which is based on the recent changes in consensus estimates and other factors related to earnings. This ranking suggests that the stock's near-term price performance is expected to align with the broader market.

In terms of recent earnings performance, DraftKings reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.41 per share. This represents an earnings surprise of -7.32%. Despite this miss, the company's revenue of $1.51 billion for the quarter ended June 2025 surpassed the Zacks Consensus Estimate by 5.99%.

The sustainability of DraftKings' stock price will depend on management's commentary on the earnings call and future earnings expectations. The current consensus EPS estimate for the coming quarter is $0.04 on $1.37 billion in revenues, while the estimate for the current fiscal year is $1.33 on $6.29 billion in revenues.

Investors should also consider the broader industry outlook. The Zacks Industry Rank for Gaming places it in the bottom 42% of industries, indicating that the industry may face challenges. However, the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

In conclusion, while DraftKings has shown mixed earnings performance, the changes in earnings estimates and the Zacks Rank provide valuable insights for investors. The company's stock price is expected to perform in line with the broader market in the near term, pending further developments and management commentary.

References:
[1] https://au.finance.yahoo.com/news/investors-heavily-search-draftkings-inc-130002910.html
[2] https://finance.yahoo.com/news/compared-estimates-draftkings-dkng-q2-233001794.html
[3] https://finance.yahoo.com/news/draftkings-dkng-q2-earnings-miss-215503327.html
[4] https://www.nasdaq.com/articles/draftkings-dkng-q2-earnings-miss-estimates