Analysts lower DraftKings and Flutter first-quarter estimates on handle concerns
Analysts at Stifel and Citizens JMP Securities forecast adjusted EBITDA misses for DraftKings and Flutter as sports betting handle growth slows and investment costs rise. Citizens estimates DraftKings’ handle will increase 3% year on year and FanDuel’s will fall 8%; both forecasts are below consensus. The analysts said tougher comparisons, rather than prediction markets, largely explain the slowdown.
Lower earnings expectations may affect investor assessments of the two operators’ near-term performance and spending.