Churchill Downs (NASDAQ:CHDN) Issues Earnings Results

Churchill Downs (NASDAQ:CHDN) released its quarterly earnings results on Wednesday. The company reported $1.23 earnings per share for the quarter, beating analysts’ consensus estimates of $1.13 by $0.10, FiscalAI reports. Churchill Downs had a return on equity of 42.16% and a net margin of 13.82%. The business had revenue of $696.00 million for the quarter, compared to the consensus estimate of $695.16 million. During the same quarter last year, the business posted $1.09 earnings per share. The company’s revenue for the quarter was up 1.9% on a year-over-year basis.

Churchill Downs Stock Performance

NASDAQ:CHDN opened at $81.95 on Thursday. The stock has a market cap of $5.71 billion, a P/E ratio of 14.06, a price-to-earnings-growth ratio of 0.88 and a beta of 0.77. The firm’s fifty day simple moving average is $82.89 and its 200 day simple moving average is $88.42. Churchill Downs has a twelve month low of $73.08 and a twelve month high of $118.35. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 3.06.

Churchill Downs Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Tuesday, January 5th. Investors of record on Friday, December 4th will be paid a $0.4690 dividend. The ex-dividend date of this dividend is Friday, December 4th. This is a positive change from Churchill Downs’s previous annual dividend of $0.4380. This represents a yield of 57.0%. Churchill Downs’s payout ratio is 7.38%.

Analyst Upgrades and Downgrades

CHDN has been the subject of a number of research reports. Citizens Jmp cut their price objective on Churchill Downs from $137.00 to $131.00 and set a “market outperform” rating for the company in a report on Tuesday, October 13th. JPMorgan Chase & Co. decreased their price objective on Churchill Downs from $123.00 to $118.00 and set an “overweight” rating on the stock in a report on Tuesday, October 20th. Weiss Ratings upgraded Churchill Downs from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, September 2nd. Stifel Nicolaus set a $132.00 target price on Churchill Downs and gave the stock a “buy” rating in a research note on Tuesday. Finally, Wells Fargo & Company reiterated an “overweight” rating and set a $120.00 price target (up from $117.00) on shares of Churchill Downs in a research report on Monday, October 19th. Ten equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $129.22.

Churchill Downs News Roundup

Here are the key news stories impacting Churchill Downs this week:

• Positive Sentiment: Quarterly earnings beat expectations: Churchill Downs reported third-quarter EPS of $1.23, up from $1.09 a year earlier and above the $1.13 analyst consensus. Revenue of $696.0 million was essentially in line with the $695.2 million estimate and increased 1.9% year over year. Churchill Downs 2026 Third Quarter Results
• Positive Sentiment: Large share-repurchase authorization: The board approved a new $750 million buyback program, which could support earnings per share and signal confidence in the company’s valuation. New $750 Million Share Repurchase Program
• Positive Sentiment: Dividend increased: Churchill Downs raised its annual dividend 7.1% to $0.469 per share, payable January 5 to shareholders of record December 4. The stated 57.0% yield appears to be a data error; at the current share price, the yield is approximately 0.57%.
• Positive Sentiment: Virginia expansion advanced: Local approval for a relocated historical racing machine entertainment venue in Henry County could create additional regional revenue capacity. Virginia HRM Entertainment Venue Approval
• Neutral Sentiment: Michael Tucker was appointed to the board as an independent director. The change may strengthen oversight but has no immediate earnings impact. Michael Tucker Board Appointment
• Neutral Sentiment: The expanded 2027 Thoroughbred Championship Series, offering more than $22 million in purses and prizes, may enhance racing engagement but is a longer-term catalyst.
• Negative Sentiment: Revenue growth remained limited, and the buyback will require substantial capital from a company with a high debt-to-equity ratio of 3.06, potentially constraining financial flexibility.

Churchill Downs Company Profile

Churchill Downs Incorporated (NASDAQ: CHDN) is a gaming, racing and entertainment company best known for operating Churchill Downs Racetrack in Louisville, Kentucky, the home of the Kentucky Derby. The company traces its history to the opening of Churchill Downs in 1875 and has expanded its operations beyond traditional Thoroughbred racing.

Its business activities include live and historical horse racing, pari-mutuel wagering, casino gaming, video lottery and related entertainment offerings.