Churchill Downs (NASDAQ:CHDN) Posts Earnings Results, Beats Expectations By $0.10 EPS

Churchill Downs (NASDAQ:CHDN) announced its earnings results on Wednesday. The company reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.13 by $0.10, FiscalAI reports. Churchill Downs had a net margin of 15.15% and a return on equity of 41.89%. The company had revenue of $696.00 million for the quarter, compared to analysts’ expectations of $695.16 million. During the same quarter in the previous year, the company posted $1.09 EPS. The firm’s quarterly revenue was up 1.9% on a year-over-year basis.

Churchill Downs Trading Up 11.2%

Shares of Churchill Downs stock opened at $91.16 on Friday. The company has a quick ratio of 0.36, a current ratio of 0.36 and a debt-to-equity ratio of 3.06. The firm has a market cap of $6.35 billion, a price-to-earnings ratio of 14.16, a PEG ratio of 0.87 and a beta of 0.77. Churchill Downs has a twelve month low of $73.08 and a twelve month high of $118.35. The business has a 50-day moving average price of $82.88 and a 200-day moving average price of $88.33.

Churchill Downs Increases Dividend

The business also recently disclosed an annual dividend, which will be paid on Tuesday, January 5th. Shareholders of record on Friday, December 4th will be issued a dividend of $0.4690 per share. This is a boost from Churchill Downs’s previous annual dividend of $0.4380. The ex-dividend date of this dividend is Friday, December 4th. This represents a dividend yield of 57.0%. Churchill Downs’s payout ratio is currently 7.55%.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Royal Bank Of Canada set a $131.00 price objective on Churchill Downs in a report on Tuesday, October 13th. Truist Financial dropped their target price on Churchill Downs from $145.00 to $140.00 and set a “buy” rating for the company in a research report on Tuesday, October 20th. JPMorgan Chase & Co. lowered their price objective on shares of Churchill Downs from $123.00 to $118.00 and set an “overweight” rating for the company in a research note on Tuesday, October 20th. Susquehanna reduced their target price on shares of Churchill Downs from $124.00 to $115.00 and set a “positive” rating on the stock in a report on Wednesday, October 21st. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and set a $120.00 price objective (up from $117.00) on shares of Churchill Downs in a research report on Monday, October 19th. Ten investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat.com, Churchill Downs currently has an average rating of “Moderate Buy” and a consensus price target of $125.78.

Key Stories Impacting Churchill Downs

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

• Positive Sentiment: Third-quarter earnings beat expectations: Churchill Downs reported adjusted EPS of $1.23, above the $1.13 analyst consensus and up from $1.09 a year earlier. Revenue rose 1.9% year over year to $696 million, narrowly exceeding estimates. Churchill Downs 2026 Third Quarter Results
• Positive Sentiment: $750 million share-repurchase program: The new authorization gives Churchill Downs additional capacity to buy back shares, potentially supporting EPS and signaling management’s view that the stock is attractively valued. Churchill Downs Announces New Share Repurchase Program
• Positive Sentiment: Dividend increased: The annual dividend was raised 7.1% to $0.469 per share, payable January 5, 2027, adding to the company’s shareholder-return appeal. Churchill Downs Dividend Announcement
• Positive Sentiment: Technical momentum improved: CHDN shares broke above their 200-day moving average, a development that can attract technical buyers and reinforce the positive reaction to the earnings report. Churchill Downs Shares Break Above 200-Day Moving Average
• Positive Sentiment: Local approvals for a relocated historical racing machine entertainment venue in Henry County, Virginia, support Churchill Downs’ expansion pipeline and future regional gaming revenue. Henry County HRM Venue Approval
• Neutral Sentiment: Stifel lowered its price target to $131 but kept CHDN on its Select List, indicating a more cautious valuation view while maintaining a favorable overall recommendation. Stifel Churchill Downs Price Target
• Neutral Sentiment: The appointment of Michael Tucker as a Class II director expands the board but is unlikely to materially affect near-term earnings. Michael Tucker Board Appointment

About Churchill Downs

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.