DraftKings Tumbles After Missing Wall Street Sales Estimates
DraftKings Tumbles After Missing Wall Street Sales Estimates
(Bloomberg) -- DraftKings Inc. shares recovered after falling as much as 11% early Friday when the sports-betting shop reported third-quarter sales that missed Wall Street estimates, due in part to unfavorable NFL game outcomes.
Third-quarter revenue surged 60% to $212.8 million, and the sports-betting company adjusted its full-year sales forecast to a midpoint of $1.26 billion. Analysts were expecting $236.1 million in sales for the third quarter and $1.29 billion for the year.
Chief Executive Officer Jason Robins said more of the favored teams won and there were fewer upsets at the start of the season. If the football games had gone the company’s way, revenue would have been $40 million higher in the quarter.
“Of course gain outcomes can also swing the other way, the last week of October had very favorable results for the house,” he said.
Robins is plotting its next move after an attempt to acquire U.K. betting giant Entain Plc fell apart. “We just decided it wasn’t the right thing for us at this time,” Robins said Friday on a conference call with analysts.
The company is looking to close its $1.56 billion acquisition of Golden Nugget Online Gaming Inc. by early 2022, Robins said.
Boston-based DraftKings forecast 2022 revenue in the range of $1.7 billion to $1.9 billion, in line with the $1.8 billion analysts had predicted.
The stock was up almost 2% to $45.49 at 10:26 a.m. in New York.
©2021 Bloomberg L.P.