Churchill Downs (NASDAQ:CHDN) Announces Quarterly Earnings Results

Churchill Downs (NASDAQ:CHDN) posted its earnings results on Wednesday. The company reported $0.97 EPS for the quarter, beating the consensus estimate of $0.85 by $0.12, FiscalAI reports. The firm had revenue of $665.90 million during the quarter, compared to the consensus estimate of $658.01 million. Churchill Downs had a return on equity of 42.54% and a net margin of 13.99%.The business’s quarterly revenue was up 6.7% on a year-over-year basis. During the same period last year, the company earned $0.92 earnings per share.

Churchill Downs Stock Performance

Shares of CHDN opened at $90.99 on Thursday. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 4.87. The firm’s fifty day simple moving average is $103.11 and its two-hundred day simple moving average is $101.95. Churchill Downs has a 12 month low of $85.58 and a 12 month high of $119.11. The stock has a market capitalization of $6.34 billion, a P/E ratio of 16.54, a price-to-earnings-growth ratio of 1.39 and a beta of 0.67.

Key Churchill Downs News

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

• Positive Sentiment: Q4 beat — CHDN reported EPS of $0.97 vs. consensus $0.85 and revenue of $665.9M vs. $658.0M, with revenue up ~6.7% YoY; management cited strong Live racing and historical-racing performance as drivers. Article Title
• Positive Sentiment: Sports betting & HRM lift results — Commentary and analyst notes highlight growth in historical-racing facilities and sports-betting volumes as incremental EBITDA drivers for the quarter. Article Title
• Positive Sentiment: New asset opens — Churchill Downs opened the Marshall Yards Racing & Gaming property (a $40–45M investment) in southwestern Kentucky, adding an operating footprint that supports meet funding and future revenue streams. Article Title
• Neutral Sentiment: Full release & metrics — The company published its 4Q and full-year filing with margin/ROE details (ROE ~42.5%, net margin ~14%). These confirm solid profitability but don’t on their own signal a material change to forward guidance. Article Title
• Neutral Sentiment: Short-interest note is effectively zero/ambiguous for February, so there’s no clear short-selling pressure signal behind the move lower.
• Negative Sentiment: Leverage & liquidity concerns — The company carries high reported leverage (debt/equity ~4.9) and low current/quick ratios (~0.57), which can make investors wary even when results beat estimates.
• Negative Sentiment: Technical/valuation pressure & profit-taking — Shares are trading below their 50- and 200-day moving averages after a prior run-up; combination of profit-taking and valuation re-rating (despite a reasonable P/E) likely contributed to the decline.

Analysts Set New Price Targets

CHDN has been the subject of a number of research reports. Wells Fargo & Company reiterated an “overweight” rating and issued a $125.00 price objective (up from $115.00) on shares of Churchill Downs in a report on Monday, January 5th. Citigroup restated an “outperform” rating on shares of Churchill Downs in a research report on Wednesday, January 14th. Citizens Jmp lifted their price target on shares of Churchill Downs from $142.00 to $146.00 and gave the stock a “market outperform” rating in a report on Wednesday, January 14th. Finally, Jefferies Financial Group reissued a “buy” rating on shares of Churchill Downs in a research note on Wednesday, December 24th. Eleven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $135.10.

Institutional Investors Weigh In On Churchill Downs

A number of hedge funds 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 during the 3rd quarter worth approximately $25,000. Geneos Wealth Management Inc. lifted its position in shares of Churchill Downs by 1,364.7% during the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the company’s stock valued at $28,000 after acquiring an additional 232 shares during the period. Parkside Financial Bank & Trust boosted its stake in Churchill Downs by 293.8% during the fourth quarter. Parkside Financial Bank & Trust now owns 256 shares of the company’s stock worth $29,000 after acquiring an additional 191 shares in the last quarter. Los Angeles Capital Management LLC bought a new position in Churchill Downs during the fourth quarter worth $38,000. Finally, Parallel Advisors LLC grew its holdings in Churchill Downs by 167.7% in the fourth quarter. Parallel Advisors LLC now owns 415 shares of the company’s stock worth $47,000 after purchasing an additional 260 shares during the period. 82.59% of the stock is currently owned by institutional investors.

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.