Racing, gaming, and entertainment company Churchill Downs (NASDAQ: CHDN) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Churchill Downs met analysts’ revenue expectations last quarter, reporting revenues of $663 million, up 3.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.
Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Churchill Downs’s revenue to grow 4.8% year on year, in line with the 4.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Churchill Downs has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Churchill Downs’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%.
Read our full analysis of AMC Entertainment’s results here and Delta’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Churchill Downs is down 3% during the same time and is heading into earnings with an average analyst price target of $135.58 (compared to the current share price of $88.15).
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