Churchill Downs (NASDAQ:CHDN) Posts Earnings Results, Hits Estimates

Churchill Downs (NASDAQ:CHDN) announced its earnings results on Wednesday. The company reported $3.45 earnings per share for the quarter, meeting the consensus estimate of $3.45, Zacks reports. The business had revenue of $980.00 million during the quarter, compared to the consensus estimate of $977.38 million. Churchill Downs had a net margin of 13.21% and a return on equity of 43.50%. The business’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.10 earnings per share.

Churchill Downs Stock Performance

Shares of CHDN traded down $5.51 during mid-day trading on Thursday, reaching $83.02. 994,625 shares of the company’s stock traded hands, compared to its average volume of 954,473. The company has a debt-to-equity ratio of 4.44, a quick ratio of 0.54 and a current ratio of 0.54. The business’s 50-day moving average price is $86.88 and its 200-day moving average price is $90.64. The stock has a market capitalization of $5.79 billion, a P/E ratio of 15.21, a price-to-earnings-growth ratio of 0.58 and a beta of 0.67. Churchill Downs has a 12 month low of $80.24 and a 12 month high of $118.35.

Key Headlines Impacting Churchill Downs

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Churchill Downs agreed to acquire NYRA’s 49% stake in United Tote, giving it full ownership of the pari-mutuel wagering technology and services business. The transaction could provide greater operating control, potential synergies and additional long-term growth opportunities. Financial terms were not disclosed. United Tote acquisition announcement
• Positive Sentiment: Second-quarter revenue reached $980 million, up 4.9% year over year and slightly above the roughly $977 million analyst estimate. Earnings were $3.45 per share, versus $3.10 a year earlier, while return on equity was 43.5% and net margin was 13.21%. The results indicate continued business growth despite a relatively modest top-line beat. Churchill Downs second-quarter results
• Neutral Sentiment: Management is reviewing strategic alternatives for its gaming assets, including a potential sale. A transaction could unlock value and sharpen the company’s focus, but no deal is guaranteed and the review introduces uncertainty about the future earnings mix. Strategic gaming asset review
• Negative Sentiment: Quarterly earnings fell short of the more demanding Zacks consensus of $3.51 per share, even though they matched other consensus estimates of $3.45. Planned Churchill Downs Racetrack projects—including an expanded Homestretch Club, upgraded infield seating and Victory Run—could support future revenue but require substantial capital spending and execution. Second-quarter earnings estimate article Churchill Downs capital projects announcement

Institutional Trading of Churchill Downs

Large investors have recently added to or reduced their stakes in the business. Measured Wealth Private Client Group LLC bought a new position in shares of Churchill Downs in the third quarter worth $25,000. Geneos Wealth Management Inc. raised its stake in shares of Churchill Downs by 1,364.7% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock valued at $28,000 after purchasing an additional 232 shares in the last quarter. Parkside Financial Bank & Trust lifted its holdings in Churchill Downs by 293.8% in the fourth quarter. Parkside Financial Bank & Trust now owns 256 shares of the company’s stock worth $29,000 after purchasing an additional 191 shares during the period. Los Angeles Capital Management LLC bought a new position in Churchill Downs in the 4th quarter valued at about $38,000. Finally, Parallel Advisors LLC grew its position in Churchill Downs by 167.7% in the 4th quarter. Parallel Advisors LLC now owns 415 shares of the company’s stock valued at $47,000 after buying an additional 260 shares in the last quarter. 82.59% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Wells Fargo & Company dropped their target price on shares of Churchill Downs from $132.00 to $120.00 and set an “overweight” rating for the company in a research report on Tuesday, July 14th. Weiss Ratings lowered Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, May 4th. Citigroup restated an “outperform” rating on shares of Churchill Downs in a research note on Friday, April 24th. Mizuho increased their target price on Churchill Downs from $146.00 to $155.00 and gave the stock an “outperform” rating in a report on Friday, April 24th. Finally, Truist Financial set a $145.00 price target on Churchill Downs in a report on Friday, June 12th. Nine investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $138.50.

Churchill Downs Company Profile

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.