Churchill Downs CHDN is set to give its latest quarterly earnings report on Wednesday, 2024-10-23. Here's what investors need to know before the announcement.
Analysts estimate that Churchill Downs will report an earnings per share (EPS) of $1.02.
The market awaits Churchill Downs's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Historical Earnings Performance
Last quarter the company beat EPS by $0.18, which was followed by a 0.52% increase in the share price the next day.
Churchill Downs Share Price Analysis
Shares of Churchill Downs were trading at $135.49 as of October 21. Over the last 52-week period, shares are up 23.0%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Churchill Downs
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Churchill Downs.
The consensus rating for Churchill Downs is Outperform, based on 10 analyst ratings. With an average one-year price target of $161.6, there's a potential 19.27% upside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Caesars Entertainment, Light & Wonder and MGM Resorts Intl, three key industry players, offering insights into their relative performance expectations and market positioning.
- The consensus among analysts is an Outperform trajectory for Caesars Entertainment, with an average 1-year price target of $53.8, indicating a potential 60.29% downside.
- Light & Wonder received a Buy consensus from analysts, with an average 1-year price target of $111.0, implying a potential 18.08% downside.
- MGM Resorts Intl received a Outperform consensus from analysts, with an average 1-year price target of $53.5, implying a potential 60.51% downside.
Overview of Peer Analysis
The peer analysis summary outlines pivotal metrics for Caesars Entertainment, Light & Wonder and MGM Resorts Intl, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Churchill Downs | Outperform | 15.90% | $388M | 22.53% |
| Caesars Entertainment | Outperform | -1.70% | $1.51B | -2.80% |
| Light & Wonder | Buy | 11.90% | $582M | 10.12% |
| MGM Resorts Intl | Outperform | 9.77% | $2.00B | 5.61% |
Key Takeaway:
Churchill Downs ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
All You Need to Know About Churchill Downs
Churchill Downs Inc is a gaming entertainment, online wagering, and racing company. It operates through three business segments: Live and Historical Racing, TwinSpires, and Gaming. The Live and Historical Racing segment includes live and historical pari-mutuel racing. The TwinSpires segment includes the revenue and expenses for online horse racing and the online and retail sports betting and iGaming wagering business. The Gaming segment includes revenue and expenses for the casino properties and associated racetracks that support the casino license. The Gaming segment generates revenue and expenses from slot machines, table games, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, and racing events.
Churchill Downs: Delving into Financials
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Churchill Downs's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 15.9%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Churchill Downs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 23.5%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Churchill Downs's ROE excels beyond industry benchmarks, reaching 22.53%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Churchill Downs's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.94% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 4.71.
To track all earnings releases for Churchill Downs visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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