DraftKings drops as Q3 revenue falls short of estimates

Shares of gaming company DraftKings DKNG.O down 6.97% at $26.03 premarket after Q3 rev misses estimates

Co says Q3 revenue rises 4% YoY to $1.14 bln due to solid engagement despite customer-friendly sport outcomes

But it missed consensus estimate of $1.40 bln, acording to data compiled by LSEG

Co revises FY25 revenue guidance to $5.9 bln–$6.1 bln; expects adjusted EBITDA of $450 mln–$550 mln driven by customer engagement and strong Monthly Unique Payers (MUP) growth

MUPs grow 2% to 3.6 mln, supported by strong retention and acquisition in Sportsbook and iGaming

Avg rating of 36 analysts is “buy”; median PT is $51 – LSEG

Stock down 24.78% YTD, as of last close