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Churchill Downs (CHDN) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Analysts on Wall Street project that Churchill Downs (CHDN - Free Report) will announce quarterly earnings of $1.01 per share in its forthcoming report, representing an increase of 16.1% year over year. Revenues are projected to reach $632.96 million, increasing 10.6% from the same quarter last year.

The consensus EPS estimate for the quarter has undergone a downward revision of 3.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

With that in mind, let's delve into the average projections of some Churchill Downs metrics that are commonly tracked and projected by analysts on Wall Street.

The combined assessment of analysts suggests that 'Revenue- Gaming' will likely reach $274.77 million. The estimate suggests a change of +12.2% year over year.

Based on the collective assessment of analysts, 'Revenue- TwinSpires' should arrive at $117.42 million. The estimate indicates a change of +4.5% from the prior-year quarter.

The consensus estimate for 'Revenue- Live and Historical Racing' stands at $240.71 million. The estimate indicates a year-over-year change of +6.7%.

The average prediction of analysts places 'Adjusted EBITDA- Gaming' at $132.38 million. The estimate is in contrast to the year-ago figure of $122.30 million.

It is projected by analysts that the 'Adjusted EBITDA- TwinSpires' will reach $40.24 million. The estimate is in contrast to the year-ago figure of $33.90 million.

Analysts' assessment points toward 'Adjusted EBITDA- Live and Historical Racing' reaching $92.35 million. Compared to the current estimate, the company reported $80.90 million in the same quarter of the previous year.

View all Key Company Metrics for Churchill Downs here>>>

Over the past month, Churchill Downs shares have recorded returns of +0.2% versus the Zacks S&P 500 composite's +4.5% change. Based on its Zacks Rank #3 (Hold), CHDN will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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