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DraftKings Inc. DKNG reported tepid third-quarter 2024 results with earnings and revenues missing the Zacks Consensus Estimate. However, both top and bottom lines increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company’s third-quarter results were driven by the return of NFL and college football. With major sports events aligning on the calendar, DraftKings is positioned to build on this momentum. DKNG plans to enhance its top-ranked sportsbook app with new live betting features and expand into NBA markets. The company’s focus is on driving sustainable revenue growth and profitability in 2025 and beyond.

Following the announcement, the company’s shares lost 5.9% in yesterday’s after-hours trading session.

Investors’ sentiment was negatively impacted by DKNG’s decision to lower its fiscal 2024 guidance for revenues and adjusted EBITDA, due to the impact of customer-friendly sports outcomes early in the fourth quarter of 2024.

Inside the Headlines of DKNG’s Q3

In the third quarter, the company reported an adjusted loss of 60 cents per share, wider than the Zacks Consensus Estimate of a loss of 42 cents. DraftKings reported an adjusted loss per share of 61 cents in the prior-year quarter.

Revenues of $1095.5 million also missed the consensus mark of $1,122 million by 2.3%. However, the top line grew 39% on a year-over-year basis. This upside was driven by strong customer engagement and efficient new customer acquisition. Also, the expansion of DraftKings’ Sportsbook into new markets, higher sportsbook hold percentage, improved promotional reinvestment and the impact of the Jackpocket acquisition (closed on May 22, 2024) contributed to the growth.

DraftKings Inc. Price, Consensus and EPS Surprise

DraftKings Inc. price-consensus-eps-surprise-chart | DraftKings Inc. Quote

Adjusted EBITDA loss was $58.5 million, down from $153.4 million reported in the year-ago quarter.

Other Operating Highlights of DKNG

During the quarter, Monthly Unique Payers (MUPs) increased 55% year over year to 3.6 million average monthly unique paying customers. This growth was driven by strong customer acquisition and retention across DraftKings’ Sportsbook and iGaming products. The expansion of the Sportsbook into new markets also contributed to the rise. Additionally, the acquisition of Jackpocket played a role in boosting MUPs. Excluding the Jackpocket impact, MUPs still grew by approximately 27% year over year.

However, the Average Revenue per MUP (ARPMUP) of $103 declined 10% year over year, due to lower ARPMUP from Jackpocket customers compared with DraftKings’ existing products. This was partially offset by improvements in Sportsbook’s hold percentage and better reinvestment in promotions for both Sportsbook and iGaming. Excluding the Jackpocket acquisition, ARPMUP grew 8% year over year.

DKNG’s Financial Information

As of Sept. 30, 2024, DraftKings had cash and cash equivalents of $877.8 million compared with $1,270.5 million as of Dec. 31, 2023.

At the end of the first nine months of 2024, net cash provided by operating activities was $92.6 million compared with $73.8 million in the year-ago period.

DKNG’s Fiscal 2024 Guidance Trimmed

For fiscal 2024, the company now estimates revenues in the range of $4.85-$4.95 billion, down from the previous estimate of $5.05-$5.25 billion. This updated guidance reflects year-over-year growth of 32% to 35%.

Adjusted EBITDA is expected to be between $240 million and $280 million, down from the prior estimate of $340-$420 million.

DKNG’s Fiscal 2025 Outlook

For fiscal 2025, DKNG expects revenues of $6.2-$6.6 billion, indicating approximately 31% year-over-year growth, considering the midpoints.

Adjusted EBITDA is expected to be between $900 million and $1 billion.

DKNG’s Zacks Rank

DraftKings currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Hyatt Hotels Corporation H delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).

Norwegian Cruise Line Holdings Ltd. NCLH reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

Management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and adjusted EBITDA.

MGM Resorts International MGM reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter.

During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. It emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.

Zacks Investment Research

PENN Entertainment, Inc. PENN reported a narrower-than-expected loss in third-quarter 2024 results. Meanwhile, the top line missed the Zacks Consensus Estimate but increased on a year-over-year basis.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The company's performance was backed by better-than-expected results in its Interactive segment. Improved hold and a higher parlay mix contributed to this growth. Also, lower promotional expenses supported the upside. However, stable consumer demand in the retail business was partially offset by an unfavorable hold in the Northeast segment. The South segment also experienced volume declines due to severe weather disruptions and ongoing hotel remodeling.

Following the results, the company’s shares rose 5.2% during yesterday’s trading hours.

PENN’s Q3 Earnings & Revenue Discussion

In the quarter under review, PENN reported an adjusted loss per share of 24 cents, narrower than the Zacks Consensus Estimate of a loss of 28 cents. In the prior-year quarter, it reported adjusted earnings per share of $1.21.

Total revenues of $1,639.2 million missed the Zacks Consensus Estimate of $1,653 million. The top line increased 1.2% on a year-over-year basis. This upside was backed by the strong Interactive segment’s performance.

PENN Entertainment, Inc. Price, Consensus and EPS Surprise

PENN Entertainment, Inc. price-consensus-eps-surprise-chart | PENN Entertainment, Inc. Quote

Revenues from the Northeast, West, Midwest and South segments were $684.8 million, $131.8 million, $292.2 million and $288.1 million, down 0.3%, 2.4%, 0.4% and 6.5% year over year, respectively. The Other segments' revenues totaled $4 million, down 11.1% year over year.

However, the Interactive segment delivered revenues of $244.6 million, up 24.6% year over year.

PENN’s Operating Headlines

In the quarter under discussion, adjusted EBITDAR declined 21.7% from the prior-year quarter’s level to $348.4 million. Adjusted EBITDAR margin contracted to 21.3% from 27.5% a year ago.

Penn Entertainment’s Interactive division incurred an adjusted EBITDAR loss of $90.9 million against $50.2 million in the prior-year quarter.

Other Financial Information of PENN

As of Sept. 30, 2024, PENN had cash and cash equivalents of $834 million compared with $1.1 billion as of Dec. 31, 2023. Traditional net debt as of Sept. 30, 2024, was $1.77 billion, up from $1.57 billion at 2023-end. Total liquidity as of Sept. 30, 2024, was $1.8 billion.

PENN’s Zacks Rank

PENN Entertainment currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Consumer Discretionary Releases

Hyatt Hotels Corporation H delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).

Norwegian Cruise Line Holdings Ltd. NCLH reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Both top and bottom lines increased on a year-over-year basis.

Management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and adjusted EBITDA.

MGM Resorts International MGM reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter.

During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. It emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.

Zacks Investment Research

Marriott Vacations Worldwide Corporation VAC reported excellent third-quarter 2024 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate and increasing year over year.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The quarterly performance benefited from solid contributions from the Vacation Ownership segment, driven by increased tours, higher development, resort management and rental profit, partially offset by lower financing profit. Also, continued recovery from last year's Maui wildfires added to growth.

Although total expenses were higher in the quarter than the prior-year level, leverage from the increased top line aided the bottom line to a great extent.

Going forward, the company aims to focus on accelerating growth and strengthening profitability. It targets to achieve annual cost efficiencies between $50 million and $100 million in the next couple of years.

VAC’s Earnings & Revenue Discussion

Adjusted earnings per share (EPS) of $1.80 surpassed the Zacks Consensus Estimate of $1.53 by 17.7%. In the year-ago quarter, it reported an adjusted EPS of $1.20.

Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise

Marriott Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriott Vacations Worldwide Corporation Quote

Quarterly revenues of $1.305 billion also surpassed the consensus mark of $1.268 billion by 2.9%. The top line increased 10% on a year-over-year basis.

Segmental Performances of Marriott Vacations

Vacation Ownership: The segment’s revenues totaled $1.25 billion, up from $1.126 billion reported in the prior-year quarter.

VAC’s Vacation Ownership total contract sales rose 5% year over year to $459 million.

The segment’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $231 million, up 33% from $173 million in the year-ago quarter. Adjusted EBITDA margin expanded 430 basis points (bps) year over year to 30.1%.

Exchange & Third-Party Management: Segmental revenues of $56 million declined year over year from $64 million. Revenues, excluding cost reimbursements, declined 10% year over year to $55 million.

Total active interval international members were down 2% year over year to 1.55 million. Average revenue per member declined 1% on a year-over-year basis to $38.93.

Adjusted EBITDA was $23 million, down 22% year over year. The segment’s adjusted EBITDA margin contracted 670 bps year over year to 43.1%.

VAC’s Corporate & Other Results

General and administrative expenses totaled $62 million, up year over year from $57 million. Our estimate was $71.7 million.

Total expenses increased 7% year over year to $1.157 billion from $1.081 billion reported in the year-ago quarter. We expected the metric to be $1.114 billion.

Adjusted EBITDA amounted to $198 million, up 32% year over year from $150 million. Our model predicted the metric to be $170.5 million.

Balance Sheet of VAC

As of Sept. 30, Marriott Vacations’ cash and cash equivalents were $197 million compared with $248 million as of Dec. 31, 2023.

At the end of the third quarter, the company had $3 billion of corporate debt and $2.2 billion of non-recourse debt related to its securitized notes receivable.

Revised 2024 Outlook of Marriott Vacations

Management continues to anticipate contract sales to be in the range of $1.790-$1.825 billion compared with $1.772 billion in 2023.

Adjusted EBITDA is now expected to be between $700 million and $720 million, up from the prior expected range of $685-$715 million. This compares with $761 million reported in 2023.

Adjusted EPS is anticipated to be between $6.05 and $6.40 compared with the prior projection of $5.90-$6.45. This compares with adjusted EPS of $7.83 in 2023.

Adjusted free cash flow is still projected to be in the range of $300-$340 million.

VAC’s Zacks Rank & Recent Consumer Discretionary Releases

Marriott Vacations currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hyatt Hotels Corporation H delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).

Norwegian Cruise Line Holdings Ltd. NCLH reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and adjusted EBITDA.

MGM Resorts International MGM reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year's quarter figure.

During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. It emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.

Zacks Investment Research

DraftKings Inc. DKNG is scheduled to report third-quarter 2024 results on Nov. 7, after the closing bell. In the last reported quarter, the company registered an earnings surprise of 500%.

DKNG’s Estimates Trend Upward

The Zacks Consensus Estimate for third-quarter adjusted loss per share has narrowed to 42 cents from 43 cents in the past 30 days. In the prior-year quarter, the company had reported an adjusted loss per share of 61 cents. For revenues, the consensus mark is pegged at $1.12 billion, suggesting a 41.6% year-over-year gain.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for DraftKings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: DraftKings has an Earnings ESP of +13.83%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DraftKings Inc. Price and EPS Surprise

DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote

What’s Shaping DKNG’s Q3 Results?

DraftKings’ third-quarter performance is likely to have been aided by increased new online sportsbook and iGaming customers. The company has expected the strong pace of customer acquisition to persist throughout the second half of the year and extend further. An increase in Monthly Unique Payers (MUPs) is likely to have boosted the company’s top line.

The integration of Jackpocket has contributed to customer acquisition and is expected to have driven additional revenues. The acquisition of Jackpocket, with its low customer acquisition costs, is helping DKNG reach a broader audience and expand cross-selling opportunities.

DraftKings is enhancing its product offerings to differentiate itself from competitors. The latest features, such as in-house player prop wagers across multiple sports and progressive parlays, have been attracting more users to its Sportsbook platform. DKNG is also likely to have benefited from decreased customer acquisition costs.

Although DraftKings experienced efficient customer acquisition, its marketing spending is likely to have grown due to ongoing investments in the Jackpocket brand. This increased spending is likely to have impacted adjusted EBITDA despite long-term acquisition benefits.

Increased sportsbook tax rates in Illinois, along with existing high-tax states like New York and Pennsylvania, are expected to have affected DraftKings’ bottom line.

Price Performance & Valuation

DKNG shares have gained 14% in the past three months, underperforming the Zacks Gaming industry but outperforming the S&P 500. In the same timeframe, other major industry players like Flutter Entertainment plc FLUT has risen 25.3%, Caesars Entertainment, Inc. CZR has rallied 14.7% and MGM Resorts International MGM has jumped 2.8%.

Price Performance

Wynn Resorts, Limited WYNN reported lower-than-expected third-quarter 2024 results wherein adjusted earnings and operating revenues missed the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line declined.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The quarter’s results reflect demand across its resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance in Las Vegas. However, increased casino and rooms expenses, along with high general and administrative expenses, were concerning for the bottom line.

The company’s continuous investments in expanding the business operations on a global scale, along with ensuring shareholder value, are commendable. This prudent attitude positions WYNN well for 2024 and beyond.

WYNN stock lost 3.3% in the after-hours trading session on Monday, post the earnings release.

WYNN’s Q3 Earnings & Revenues

The company reported adjusted earnings per share (EPS) of 90 cents, which missed the Zacks Consensus Estimate of $1.17 by 23.1%. In the prior-year quarter, the company reported an adjusted EPS of 99 cents.

Wynn Resorts, Limited Price, Consensus and EPS Surprise

Wynn Resorts, Limited price-consensus-eps-surprise-chart | Wynn Resorts, Limited Quote

Quarterly operating revenues of $1.69 billion also missed the consensus mark of $1.74 billion by 2.4%. That said, the top line increased 1.2% on a year-over-year basis.

Wynn Palace Operations

Wynn Palace’s operating revenues declined to $519.8 million from $524.8 million reported in the prior-year quarter. Our model predicted segmental revenues to be $558.2 million.

Casino revenues remained flat year over year at $418 million. Rooms and entertainment, retail and other revenues decreased 9.5% and 19.5% year over year to $49.1 million and $21.1 million, respectively. Food and beverage revenues increased 20.2% year over year to $31.5 million.

In the VIP segment, table games turnover was $3.2 billion, up 11.6% year over year. VIP table games win rate (based on turnover) was 3% compared with 3.4% in the prior-year quarter. Table drop in the mass market segment was $1.69 billion compared with $1.73 billion in the prior-year quarter. Table game wins in mass market operations amounted to $404.3 million compared with $402.3 million in the prior-year quarter.

During the quarter, revenue per available room (RevPAR) declined 12.7% year over year to $289. Occupancy levels in the segment were 98.3% compared with 96.9% in the prior year quarter. The average daily rate (ADR) was $295, down 13.7% on a year-over-year basis.

Wynn Macau Operations

Wynn Macau’s operating revenues amounted to $352 million compared with $295 million in the prior-year quarter. For this business operation, we projected year-over-year growth of 1.2% to $298.7 million.

Casino revenues were $296.8 million, up 28.9% year over year. On a year-over-year basis, revenues from rooms declined 25% to $23.8 million, while revenues from food and beverage increased 6.8% to $19.5 million. Entertainment and retail and other revenues declined 19.4% year over year to $11.9 million.

Table games turnover in the VIP segment inched up 0.7% year over year to $1.2 billion. The VIP table games win rate (based on turnover) was 3.6%, up from 3.5% reported in the prior-year quarter.

Table drop in the mass market segment was $1.52 billion compared with $1.38 billion in the prior-year quarter. Table games win in the mass market category was $280 million compared with $228.3 million in the prior-year quarter.

During the quarter, RevPAR declined 28.8% year over year to $230. Occupancy levels in the segment were 98.9% compared with 98.7% in the prior-year quarter. ADR was $233, down 28.7% year over year.

Las Vegas Operations

Operating revenues from Las Vegas operations were $607.2 million compared with $619 million in the prior-year quarter. Our projection for the metric was $658.1 million.

Casino revenues declined 13.6% year over year to $145.2 million. Revenues from food and beverage plunged 5.6% to $191.8 million. Revenues from rooms and entertainment, retail and other increased 4.8% and 20% year over year to $187.1 million and $83.1 million, respectively.

Table games drop was down 4.4% year over year to $580.8 million. Table game wins also decreased 14.3% year over year to $135.2 million. Table games win percentage of 23.3% was down from 26% in the prior-year quarter.

RevPAR rose 5.8% year over year to $441. The occupancy rate was 89%, down from 90% in the prior-year period. ADR was $495, up 6.9% year over year.

Encore Boston Harbor

Operating revenues from Encore Boston Harbor operations amounted to $214.1 million compared with $210.4 million in the prior-year quarter. Our projection for the metric was $203.4 million.

Casino revenues increased 1.8% to $158.7 million. Revenues from rooms and food and beverage inched down 0.4% year over year to $24.7 million and $19.8 million, respectively. Entertainment, retail and other revenues increased 11.6% year over year to $10.8 million.

During the quarter, table games win percentage of 21.3% was up from 20.8% in the prior-year quarter.

RevPAR increased 1.7% year over year to $412. The occupancy rate was 96.9%, up from 96% in the prior-year quarter. ADR was $426, up 1.2% year over year.

Operating Performance of Wynn Resorts

During the third quarter, adjusted property EBITDAR was $527.7 million compared with $530.4 million in the prior-year quarter.

Adjusted property EBITDAR from total Macau operations totaled $262.9 million compared with $255 million in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $202.7 million compared with $219.7 million in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $63 million compared with $60.5 million in the prior-year quarter.

Cash Position of WYNN

As of Sept. 30, 2024, Wynn Resorts’ cash and cash equivalents totaled $2.41 billion compared with $2.88 billion as of Dec. 31, 2023.

Total current and long-term outstanding debt at the end of the third quarter amounted to $11.79 billion. The figure included $1.46 billion of Wynn Las Vegas-related debt, $6.41 billion of Macau debt, $3.3 billion of Wynn Resorts Finance debt and $614.5 million of debt held by the retail joint venture, which the company consolidated.

WYNN’s Zacks Rank & Recent Consumer Discretionary Releases

Wynn Resorts currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hyatt Hotels Corporation H delivered third-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.

The company reported a 3% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. However, comparable system-wide all-inclusive resorts’ Net Package RevPAR declined 0.9% year over year. As of Sept. 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 690 hotels (or about 135,000 rooms).

Norwegian Cruise Line Holdings Ltd. NCLH reported solid third-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.

The management attributed the performance to the strength of NCLH's business model, the appeal of its product offerings across brands, and the effective execution by both shoreside and shipboard teams. Driven by high demand and a focus on cost control and margin enhancement, the company has raised its full-year guidance for a fourth time, anticipating 2024 to set new records for revenues, Net Yield growth and Adjusted EBITDA.

MGM Resorts International MGM reported third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year's quarter figure.

During the quarter, the company reported sequential improvements in Las Vegas, driven by growth in Average Daily Rate and occupancy levels. The company emphasized advancements in digital investments and an impressive pipeline of integrated resort developments in Japan, New York and other markets to drive growth in the upcoming periods.

Zacks Investment Research