The stock of DraftKings (DKNG) is down 10% after the sports betting company reported weaker-than-expected third-quarter financial results.
The Boston-based company announced an earnings per share (EPS) loss of -$0.52 U.S., which was worse than a loss of -$0.43 U.S. expected on Wall Street.
Revenue for the quarter totaled $1.14 billion U.S., which was below Wall Street’s estimate of $1.20 billion U.S.
The company’s guidance also came up short, with management forecasting full-year 2025 sales of $5.9 billion U.S. to $6.1 billion U.S. Wall Street has forecast $6.19 billion U.S. in revenue.
The company also lowered its earnings outlook for the year, saying it expects $450 million U.S. to $550 million U.S. That’s down from $800 million U.S. to $900 million U.S. previously.
On an earnings call with media, management reaffirmed plans to launch a new predictions market platform called “DraftKings Predictions.”
Predictions markets that let people bet on a wide variety of items and events, from cryptocurrency prices to political elections, are popular with individual gamblers.
DraftKings also recently announced that it will become the official sportsbook and odds provider for television network ESPN. Going forward, DraftKings will be added to ESPN’s app.
Management at DraftKings blamed the poor Q3 results on increased spending on advertising and marketing as it tries to gain greater market share in the U.S.
Before today (Nov. 7), DKNG stock had declined 23% this year to trade at $27.98 U.S. per share.
