Churchill Downs Earnings: Everything You Must Know Now

Churchill Downs Inc. (NASDAQ:CHDN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Churchill Downs Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.08% to $2.81 in the quarter versus EPS of $2.60 in the year-earlier quarter.

Revenue: Rose 4.79% to $283.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Churchill Downs Inc. reported adjusted EPS income of $2.81 per share. By that measure, the company missed the mean analyst estimate of $2.89. It missed the average revenue estimate of $294.89 million.

Quoting Management: Robert L. Evans, Chairman and CEO: “With record second-quarter net revenues and net earnings, we were pleased with the quarter. Our Gaming segment Adjusted EBITDA was up $4.4 million reflecting the addition of our Riverwalk Casino Hotel property in Vicksburg, Miss., that we acquired in October of last year. The Adjusted EBITDA increase of Kentucky Oaks and Derby Week was $5.8 million, the third consecutive year where Kentucky Oaks and Derby Week Adjusted EBITDA growth has exceeded $5.0 million.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased 4583.33% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.42 to a profit $0.4. For the current year, the average estimate has moved down from a profit of $3.63 to a profit of $3.5 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet