The investors in DraftKings Inc.'s (NASDAQ:DKNG) will be rubbing their hands together with glee today, after the share price leapt 27% to US$53.49 in the week following its yearly results. Revenues came in at US$4.8b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$1.05 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DraftKings after the latest results.

Check out our latest analysis for DraftKings

Taking into account the latest results, the most recent consensus for DraftKings from 29 analysts is for revenues of US$6.42b in 2025. If met, it would imply a substantial 35% increase on its revenue over the past 12 months. DraftKings is also expected to turn profitable, with statutory earnings of US$0.57 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.38b and earnings per share (EPS) of US$0.57 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.1% to US$54.81despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of DraftKings' earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on DraftKings, with the most bullish analyst valuing it at US$75.00 and the most bearish at US$35.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that DraftKings' revenue growth is expected to slow, with the forecast 35% annualised growth rate until the end of 2025 being well below the historical 46% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.9% annually. Even after the forecast slowdown in growth, it seems obvious that DraftKings is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple DraftKings analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of DraftKings' balance sheet, and whether we think DraftKings is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.