DraftKings stock reversed higher Friday after the sports-betting company missed estimates for third-quarter results.
DraftKings late Thursday reported a loss of 60 cents per share, barely improved from a loss of 61 cents last year. Revenue increased 39% to $1.095 billion.
FactSet analysts expected the loss to improve to 41 cents per share, while the revenue jump fell short of estimates for $1.11 billion.
DraftKings' adjusted loss narrowed to 17 cents per share from 35 cents last year, edging out FactSet estimates for an 18 cent loss adjusted.
Monthly unique players (MUPs) rose to 3.6 million from 2.29 million last year, while analysts expected 3.51 million.
The average revenue per MUP came in at $103, compared to $114 per share last year. FactSet anticipated $105.66 per unique player.
DraftKings lowered its 2024 revenue guidance to range from $4.85 billion to $4.95 billion, down from the previous range of $5.05 billion to $5.25 billion due to customer-friendly sports outcomes early in the fourth quarter.
The company introduced its 2025 revenue outlook of $6.2 billion to $6.6 billion, representing 31% growth at the midpoint of the updated 2024 range.
FactSet analysts expect 2024 revenue of $5.13 billion, growing to $6.24 billion in 2025.
DraftKings on Thursday announced it secured a $500 million revolving credit facility from multiple banks, which will be used for working capital and general corporate purposes.
Following results, CFRA Research analyst Zach Warring raised his opinion on DraftKings stock to strong buy from buy. "We believe DKNG has the best mobile app in the space and continues to innovate on new product offerings," Warring wrote in a note shared with IBD. "We raise our opinion and believe recent consolidation provides a great entry point."
Elsewhere, Jefferies in a Wednesday research note wrote that Missouri and Virginia passed gambling ballot initiatives. That should benefit DraftKings and Flutter, parent of rival FanDuel, according to The Fly.
DraftKings Stock
DKNG stock surged about 3% Friday, pushing above a test of resistance at its 200-day moving average. Shares wavered between declines and gains in early trade, after falling more than 6% premarket. DraftKings shares swung 1.9% higher during Thursday trade.
Over the last five trading days DKNG stock advanced, including a 4.9% gain Wednesday to jump above its 50-day moving average.
DraftKings climbed nearly 14% in 2024.
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