D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - DraftKings Inc. (NASDAQ:DKNG) received a reiterated Buy rating and $58.00 price target from UBS on Thursday. The stock, currently trading at $45.36, has shown impressive momentum with a 50.5% return over the past year. According to InvestingPro data, analyst targets range from $37 to $78.
UBS noted that DraftKings maintained its fiscal year 2025 revenue range but indicated results would likely be at the higher end of $6.2-6.4 billion, representing 32-34% year-over-year growth. This outlook suggests potential upside to UBS’s estimate of $6.29 billion and the Street consensus of $6.31 billion. The company has demonstrated strong execution, with current revenue reaching $5 billion and a healthy gross profit margin of 38.3%.
The company maintained its EBITDA guidance at $800-900 million despite higher taxes in New Jersey, Louisiana, and Illinois, as well as upcoming launch expenses in Missouri planned for December. UBS highlighted that the midpoint of this EBITDA range remains above both UBS’s estimate of $829 million and the Street’s $830 million.
DraftKings also raised its fiscal year 2025 net revenue margin guidance to above 7.5%, an increase of at least 25 basis points from the previous guidance range of 7.0% to 7.5%.
The higher revenue expectations were attributed to improved structural hold and favorable sports outcomes, though the company’s implied margin is lower than previous guidance due to the tax increases and Missouri launch costs.
In other recent news, DraftKings Inc. reported impressive second-quarter earnings, surpassing analyst expectations. The company posted record revenue of $1.51 billion, a 37% year-over-year increase, driven by a 45.3% rise in sportsbook revenue and a 22.6% increase in iGaming revenue. Adjusted earnings per share were $0.38, significantly beating the analyst estimate of $0.13. Following these results, several firms reiterated their positive outlook on DraftKings. Stifel maintained a Buy rating with a $51 price target, while Goldman Sachs also kept its Buy rating and set a $59 price target. Bernstein SocGen Group raised its price target from $52 to $55, highlighting growth in live betting. BofA Securities continued its Buy rating with a $50 price target, noting strong sportsbook results. The company’s performance has addressed investor concerns about growth and profitability in the online sports betting sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.