(Bloomberg) -- DraftKings Inc., one of the largest-sports betting companies, cuts its full-year estimate for 2024 revenue and profit, citing a tough start to the fourth quarter. The announcement sent the shares lower in extended trading.
Sales this year will be $4.85 billion to $4.95 billion, according to a statement Thursday. That’s below the peak of $5.25 billion the company had forecast earlier. Analysts were predicting $5.13 billion.
Profit will also be lower than estimated previously. The Boston-based online gambling company expects to report 2024 earnings of $240 million to $280 million before interest, taxes, depreciation and amortization. That’s less than the $340 million to $420 million seen previously and also below Wall Street estimates.
Gamblers have gotten lucky in the early part of the fourth quarter, DraftKings said, citing “customer-friendly sports outcomes” that have cut its prospects for sales and profit.
The forecast was made in a report on third-quarter results that also came up light on revenue. Sales for the period rose 39% to $1.10 billion. Analysts were predicting $1.11 billion.
Shares of DraftKings were down more than 4% to $37.41 at 5:17 p.m. in New York.
(Adds third-quarter sales in fifth paragraph. The year in the headline was corrected in an earlier version of this story.)
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