Churchill Downs (CHDN) Q3 Earnings: What To Expect
Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Churchill Downs beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $890.7 million, up 15.9% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EBITDA and earnings estimates.
Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Churchill Downs’s revenue to grow 9.8% year on year to $628.5 million, slowing from the 49.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 10 analysts). Churchill Downs has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Churchill Downs’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Churchill Downs is down 1.6% during the same time and is heading into earnings with an average analyst price target of $162.67 (compared to the current share price of $135).
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