DraftKings Inc. (NASDAQ:DKNG) reported worse-than-expected third-quarter results and lowered its fiscal 2026 guidance, after the closing bell on Thursday.
DraftKings reported an adjusted loss of 53 cents per share, wider than the consensus estimate of a loss of 39 cents. The company also reported revenue of $1.329 billion, up 16% from a year earlier but, missing the consensus estimate of $1.398 billion.
“The third quarter marked a pivotal moment for DraftKings, as the Predictions offering we have been building is now powering meaningful growth for our business,” said Jason Robins, DraftKings’ CEO and co-founder. He said more than 1.6 million customers have engaged with Predictions this year.
DraftKings lowered its fiscal 2026 revenue guidance to $6.35 billion to $6.55 billion from $6.50 billion to $6.90 billion, versus the consensus estimate of $6.672 billion. For fiscal 2027, DraftKings expects revenue of $7.35 billion to $7.75 billion, versus the consensus estimate of $7.597 billion.
DraftKings shares fell 1.4% to $18.26 in pre-market trading.
These analysts made changes to their price targets on DraftKings following earnings announcement.
- Stifel analyst Jeffrey Stantial downgraded the stock from Buy to Hold and lowered the price target from $32 to $21.
- BTIG analyst Clark Lampen maintained the stock with a Buy and cut the price target from $26 to $23.
- Needham analyst Bernie McTernan maintained the stock with a Buy and lowered the price target from $30 to $25.
Considering buying DKNG stock? Here’s what analysts think:
Photo via Shutterstock