Yahoo Finance Analysts Have Made A Financial Statement On Churchill Downs Incorporated's (NASDAQ:CHDN) Second-Quarter Report
Churchill Downs Incorporated (NASDAQ:CHDN) just released its quarterly report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.7% to hit US$891m. Statutory earnings per share (EPS) came in at US$2.79, some 3.5% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Churchill Downs
Following the latest results, Churchill Downs' ten analysts are now forecasting revenues of US$2.76b in 2024. This would be a satisfactory 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 3.4% to US$5.37 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.73b and earnings per share (EPS) of US$5.71 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at US$157, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Churchill Downs analyst has a price target of US$166 per share, while the most pessimistic values it at US$143. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Churchill Downs' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Churchill Downs' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% annually. So it's pretty clear that, while Churchill Downs' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$157, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Churchill Downs analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Churchill Downs is showing 1 warning sign in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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