Yahoo Finance Why Are Churchill Downs (CHDN) Shares Soaring Today
What Happened:
Shares of racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) jumped 9% in the pre-market session after the company reported first-quarter results that blew past analysts' revenue, EBITDA, and EPS expectations. That was driven by strong performance in its racing segment, particularly at its TwinSpires subsidiary.
During the earnings release, Churchill Downs announced it would open The Rose Gaming Resort in September 2024, which cost $460 million to build. It also shared plans to open another site in the first quarter of 2025.
Lastly, the company closed the sale of its 49% stake in United Tote Company on April 8, 2024. Overall, this was a really good quarter that should please shareholders.
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What is the market telling us:
Churchill Downs's shares are not very volatile than the market average and over the last year have had only 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Churchill Downs is down 2.9% since the beginning of the year, and at $130.24 per share it is trading 12.6% below its 52-week high of $149.08 from April 2023. Investors who bought $1,000 worth of Churchill Downs's shares 5 years ago would now be looking at an investment worth $2,759.
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