By Kuldip K. Ambastha
On Friday, February 17, 2023, the stock price of DraftKings Inc. (DKNG), an American fantasy sports contest and sports betting company, rose by +15.3% per share. The company had a strong 4Q2022, with revenue growth alongside an improved financial forecast for the year of 2023. For the quarter, DraftKings exceeded expectations by having a -$0.53 earnings per share (EPS) figure compared with a Wall Street consensus forecast of -$0.59. In 2023, the company is now expecting less of a loss than before, paired with a path to profit in 2024. Corporate leaders have made strong expense management a priority, and this will lead to improved earnings before interest, taxes, depreciation, and amortization (EBITDA) going forward.
Keywords – DraftKings Inc., DraftKings, DKNG, fantasy sports, sports betting, 4Q2022, 2023, 2024, revenues, earnings per share, EPS, forecast, loss, profit, expense management, earnings before interest, taxes, depreciation, and amortization, EBITDA.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in DKNG.
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