Churchill Downs (NASDAQ:CHDN) Announces Earnings Results

Churchill Downs (NASDAQ:CHDN) issued its quarterly earnings data on Wednesday. The company reported $3.45 earnings per share for the quarter, hitting the consensus estimate of $3.45, Zacks reports. Churchill Downs had a return on equity of 45.12% and a net margin of 13.82%.The company had revenue of $980.00 million during the quarter, compared to analyst estimates of $977.38 million. During the same period in the prior year, the business posted $3.10 earnings per share. The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year.

Churchill Downs Stock Up 1.6%

Churchill Downs stock traded up $1.35 during midday trading on Friday, reaching $84.05. The company’s stock had a trading volume of 297,845 shares, compared to its average volume of 970,574. The company has a market cap of $5.86 billion, a P/E ratio of 14.48, a P/E/G ratio of 0.57 and a beta of 0.67. The company has a quick ratio of 0.54, a current ratio of 0.54 and a debt-to-equity ratio of 4.44. The business has a 50-day simple moving average of $86.83 and a 200-day simple moving average of $90.46. Churchill Downs has a fifty-two week low of $79.40 and a fifty-two week high of $118.35.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on CHDN shares. Susquehanna raised their price objective on Churchill Downs from $121.00 to $124.00 and gave the stock a “positive” rating in a research report on Friday. Weiss Ratings lowered shares of Churchill Downs from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, May 4th. Jefferies Financial Group restated a “buy” rating on shares of Churchill Downs in a report on Thursday, July 2nd. Citizens Jmp cut their target price on shares of Churchill Downs from $149.00 to $137.00 and set a “market outperform” rating on the stock in a research note on Friday. Finally, Citigroup restated an “outperform” rating on shares of Churchill Downs in a research note on Friday. Nine analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Churchill Downs currently has an average rating of “Moderate Buy” and an average target price of $136.62.

Institutional Investors Weigh In On Churchill Downs

Institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. lifted its position in shares of Churchill Downs by 8.0% during the 4th quarter. Invesco Ltd. now owns 169,001 shares of the company’s stock worth $19,229,000 after buying an additional 12,539 shares during the last quarter. Corient Private Wealth LLC raised its stake in Churchill Downs by 786.6% during the 4th quarter. Corient Private Wealth LLC now owns 56,922 shares of the company’s stock worth $6,477,000 after acquiring an additional 50,502 shares in the last quarter. Alberta Investment Management Corp purchased a new stake in Churchill Downs in the fourth quarter valued at $1,525,000. Garton & Associates Financial Advisors LLC acquired a new position in Churchill Downs in the fourth quarter valued at $263,000. Finally, VARCOV Co. purchased a new position in shares of Churchill Downs during the fourth quarter worth about $277,000. Hedge funds and other institutional investors own 82.59% of the company’s stock.

Key Stories Impacting Churchill Downs

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

• Positive Sentiment: Analysts remain bullish despite target changes. Susquehanna raised its price target to $124 and assigned a “positive” rating, while Wells Fargo lowered its target to $117 but maintained an “overweight” rating. Citizens also cut its target to $137 but retained a “market outperform” rating. The revised targets still imply substantial upside from recent trading levels. Benzinga analyst updates
• Positive Sentiment: Churchill Downs agreed to acquire NYRA’s 49% stake in United Tote. The transaction will give CHDN full ownership of the pari-mutuel technology and wagering-services business, potentially improving strategic control and long-term growth opportunities. United Tote acquisition
• Positive Sentiment: Second-quarter revenue grew 4.9% year over year to $980 million, slightly exceeding the roughly $977 million consensus estimate. Reported EPS of $3.45 matched one consensus measure and increased from $3.10 a year earlier. CHDN second-quarter results
• Neutral Sentiment: CHDN outlined a $285 million Victory Run development ahead of the 2028 Kentucky Derby, alongside expanded club and infield seating projects. The investment could support future revenue, but it also increases near-term capital spending. Victory Run buildout
• Negative Sentiment: Results fell short of the stricter Zacks EPS estimate of $3.51. The earnings miss and conference-call commentary appear to have prompted the recent sell-off, particularly after strong Derby-related expectations had raised the bar for performance. Zacks Q2 earnings analysis

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.