DraftKings Shares Fall 33.3%; Analysts Slash Q1 EPS Estimate to $0.30
DraftKings shares have plunged 33.3% over the past month, underperforming the gaming industry’s 15.9% decline, as analysts cut its current-quarter EPS forecast by 8.8% to $0.30. The company issued conservative 2026 revenue guidance excluding expected prediction market income and carries a #4 (Sell) rating from its proprietary stock-rating model.
1. Recent Share Performance
DraftKings shares have declined 33.3% over the past month, significantly underperforming the 15.9% drop across the gaming sector. This sharp pullback reflects growing investor caution amid downward revisions to the company’s near-term earnings outlook.
2. Consensus Earnings and Revenue Forecasts
Analysts now forecast $0.30 in EPS for the current quarter, a 150% year-over-year gain but down 8.8% over the past 30 days. Full-year EPS is seen at $1.69 (up 156.1% YoY, down 1.9% in the last month) and next-fiscal EPS at $1.93 (up 14.1% YoY, down 13.5% last month). Revenue estimates stand at $1.81 billion for the quarter (+28.7% YoY), $7.21 billion for the current year (+19.1%) and $8.57 billion next year (+18.9%).
3. Conservative 2026 Guidance Outlook
Management issued cautious guidance for fiscal 2026 that excludes any contributions from the planned entry into prediction markets, signaling a conservative approach to near-term revenue assumptions. This guidance reflects uncertainty around the timing and scale of the new segment’s impact.
4. Proprietary Rating Model
DraftKings carries a #4 (Sell) rating from its proprietary stock-rating model, driven by the magnitude of recent downward earnings revisions and other valuation metrics. This rating suggests the stock may underperform the broader market in the near term.