DraftKings stock reversed lower Friday after the Boston-based sports betting and gaming company delivered first-quarter results late Thursday and hiked its revenue outlook.
DraftKings reported a loss of 30 cents per share, improved from a loss of 87 cents per share the year prior. Including adjustments, DraftKings had a quarterly loss of 3 cents per share, compared to an adjusted loss of 51 cents per share last year. Total revenue swept nearly 53% higher, to $1.174 billion.
FactSet analysts expected an adjusted loss of 17 cents per share on 46% revenue growth, to $1.12 billion.
Key to the jump in revenue was the launch of legal sports betting in Vermont in January, followed by North Carolina in March. Sports betting is now live and legal in 38 states and Washington, D.C., American Gaming Association data shows.
The number of monthly unique players (MUPs) increased 23% to 3.4 million, while the average revenue per MUP rose 25% to $114.
The company's Q4 earnings beat from Feb. 16 showed adjusted earnings improved to 29 cents per share from a loss of 14 cents the year prior. However, the revenue growth rate slowed for the second quarter in a row, at 43% to a record $1.23 billion.
Outlook
DraftKings guided full-year revenue to a range between $4.8 billion and $5 billion, up from its prior outlook of $4.65 billion to $4.9 billion.
The sportsbook expects 2024 adjusted earnings before interest, taxes, depreciation and amortization of between $460 million to $540 million.
Wall Street forecasts full-year adjusted earnings improve to 83 cents per share compared to a loss of 41 cents last year. Analysts expect 2024 revenue spikes 31.6% to $4.83 billion.
DraftKings Stock
DKNG stock slid 2.9% Friday. Shares swung 2.5% higher in early trade after surging nearly 5% premarket. DKNG climbed 1.7% during regular trade on Thursday.
DraftKings stock rallied about 18.6% so far this year.
Elsewhere, casino operator MGM Resorts International rose slightly Friday. Shares surged 2.6% Thursday on its Q1 beat in the morning, driven by record quarters for its operations in China and Las Vegas.
Flutter Entertainment, parent company of rival FanDuel, climbed 2.5% Friday after shares rose 1% Thursday. Its first-quarter results are due May 14.
Penn Entertainment rebounded a fraction Friday. PENN stock tumbled 8.6% Thursday on a major Q1 earnings miss. The ESPN Bet sportsbook operator reported an adjusted loss of 79 cents per share, compared to FactSet estimates of a 47 cent loss. Revenue slid 3.9% to $1.6 billion, missing views of $1.63 billion. Executives noted lower-than-expected hold rates and spending per user.
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