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DraftKings (DKNG - Free Report) is set to report third-quarter 2022 results on Nov 4.

The Zacks Consensus Estimate for revenues is pegged at $436.2 million, indicating an increase of 104.96% from the year-ago quarter’s levels.

The consensus mark for loss has moved north by 1 cent in the past 30 days and is currently pegged at $1.07 per share.

The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. DraftKings has a trailing four-quarter earnings surprise of 7.48%, on average.

Let’s see how things have shaped prior to this announcement.

DraftKings Inc. Price and EPS Surprise

DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote

Factors to Consider

Increasing global demand for online gambling and sports betting is expected to have positively impacted DraftKings’ third-quarter performance.

DraftKings is live with mobile sports betting in 17 states that collectively represent approximately 36% of the U.S. population. The company operates iGaming in five states, representing approximately 11% of the U.S. population.

The company’s continuous efforts to expand the functionality and content offering of its Sportsbook product are expected to have driven customer acquisition, engagement, and retention in the to-be-reported quarter.

In the second quarter, Average Revenue per Monthly Unique Payers was $103, up 30% year over year, attributed to strong customer engagement, a continued mix shift into DraftKings’ Sportsbook and iGaming products and reduced promotional intensity compared to the same period in 2021. The trend is likely to have continued in the to-be-reported quarter.

The demand for iGaming, such as Roulette and Blackjack, benefited from a spike in user activity. The trend is expected to have continued in the to-be-reported quarter.

DraftKings launched its online sportsbook in Kansas in the to-be-reported quarter. To further expand its reach in the addressable market and strengthen its user base, the company has been continuously working on adding depth to its mobile sports betting and iGaming products.

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