Yahoo Finance Churchill Downs (CHDN) Q2 Earnings Report Preview: What To Look For
Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) will be reporting earnings tomorrow after market close. Here's what you need to know.
Churchill Downs beat analysts' revenue expectations by 4.4% last quarter, reporting revenues of $590.9 million, up 5.6% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Horse Racing revenue estimates.
Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Churchill Downs's revenue to grow 11.4% year on year to $856.5 million, slowing from the 31.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.70 per share.
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 three times over the last two years.
Looking at Churchill Downs's peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 17.7%, beating analysts' expectations by 1.9%, and Levi's reported revenues up 7.8%, in line with consensus estimates. Carnival traded up 12% following the results while Levi's was down 15.7%.
Read our full analysis of Carnival's results here and Levi's results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7.9% on average over the last month. Churchill Downs's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $154 (compared to the current share price of $140.74).
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