Churchill Downs (CHDN) Q1 Earnings Report Preview: What To Look For

Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Churchill Downs reported revenues of $561.2 million, up 16.9% year on year, beating analyst revenue expectations by 1.5%. It was a decent quarter for the company, with a beat of analysts' earnings and revenue estimates.

Is Churchill Downs buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Churchill Downs's revenue to grow 1% year on year to $564.8 million, slowing down from the 53.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.

The company missed Wall St's revenue estimates three times over the last two years.

Looking at Churchill Downs's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Carnival reported revenues up 22% year on year, inline with analysts' estimates. Nike traded down 7% on the results, Carnival was down 4.1%.

Read our full analysis of Nike's results here and Carnival's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 5.4% over the last month. Churchill Downs is up 2.6% during the same time, and is heading into the earnings with analyst price target of $144.2, compared to share price of $120.7.

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