Shares of DraftKings Inc. (DKNG) surged 8% in extended trading on Thursday following the sports website's release of impressive quarterly results. The company exceeded analyst expectations for both revenue and earnings, prompting an upward revision of its full-year guidance range.
Strong Performance in the Third Quarter
DraftKings reported a net loss of $283.1 million, or 61 cents per share, for the fiscal third quarter. This marked a significant improvement from the net loss of $450.5 million, or $1 per share, recorded in the same quarter last year. Adjusted earnings reached 35 cents per share. The company's revenue also experienced robust growth, reaching $789.9 million compared to $501.9 million the previous year.
Analysts' Expectations Surpassed
FactSet analysts had anticipated an average net loss of 79 cents per share on sales of $705 million. However, DraftKings outperformed these estimates, further boosting investor confidence in the company's prospects.
Upward Revision of Fiscal Year Guidance
Encouraged by its strong performance, DraftKings raised its fiscal year revenue guidance to a range of $3.67 billion to $3.72 billion. This adjustment signals the company's optimism for continued growth and a positive outlook for the future.
Impressive Stock Performance
With shares soaring 154% throughout the year, DraftKings has significantly outpaced the broader S&P 500 index which has seen a 12% increase.
In conclusion, DraftKings has released exceptional quarterly results that have surpassed market expectations. The company's revenue and earnings have experienced substantial growth, leading to an optimistic upward revision of its full-year guidance. Furthermore, DraftKings' remarkable stock performance highlights its strong position in the market and investor confidence in its long-term prospects.
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