Churchill Downs Q3 revenue slightly misses estimates

Overview

• US gaming and racing operator's Q3 revenue rose 2%, slight miss vs analyst expectations

• Net income more than doubled from prior year, driven by absence of impairment charges

• Company approved new $750 mln share repurchase program

Outlook

• Churchill Downs did not provide specific financial guidance for the current or future periods

Result Drivers

• KENTUCKY HRM GROWTH - Revenue growth driven by higher contributions from Kentucky historical racing machine venues

• VIRGINIA COMPETITION - Increased competition led to lower revenue at Central Virginia historical racing machine venues

• NEW TAX EXPENSE - Central Virginia venues faced higher costs from a new tax on live race days

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the casinos & gaming peer group is "buy"

• Wall Street's median 12-month price target for Churchill Downs Incorporated is $124.00, about 52.1% above its October 27 closing price of $81.52

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 27 - Caesars Q3 revenue misses estimates despite regional growth

• Oct 27 - Monarch Casino Q3 revenue misses estimates despite higher casino sales

• Oct 28 - UK's Healey increases taxes on gambling companies in budget

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)