Racing, gaming, and entertainment company Churchill Downs (NASDAQ: CHDN) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
Churchill Downs beat analysts’ revenue expectations last quarter, reporting revenues of $683 million, up 8.7% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.
Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Churchill Downs’s revenue to grow 6% year on year, slowing from the 11.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Churchill Downs has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Churchill Downs’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 27.8%, beating analysts’ expectations by 6.6%, and DraftKings reported revenues up 42.8%, in line with consensus estimates. Rush Street Interactive traded up 7.3% following the results while DraftKings was down 13.5%.
Read our full analysis of Rush Street Interactive’s results here and DraftKings’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Churchill Downs is down 7.4% during the same time and is heading into earnings with an average analyst price target of $138.08 (compared to the current share price of $94.01).
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