Churchill Downs (NASDAQ:CHDN) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Churchill Downs (NASDAQ:CHDN) posted its earnings results on Wednesday. The company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.83 by $0.14, FiscalAI reports. Churchill Downs had a return on equity of 42.54% and a net margin of 13.99%.The firm had revenue of $665.90 million during the quarter, compared to the consensus estimate of $658.01 million.

Churchill Downs Trading Down 0.1%

Shares of CHDN stock traded down $0.05 during trading hours on Wednesday, reaching $96.14. 1,166,815 shares of the stock were exchanged, compared to its average volume of 830,200. The firm has a market capitalization of $6.70 billion, a price-to-earnings ratio of 17.48, a price-to-earnings-growth ratio of 1.36 and a beta of 0.67. Churchill Downs has a 12-month low of $85.58 and a 12-month high of $119.11. The company’s 50-day moving average price is $103.54 and its 200-day moving average price is $102.00. The company has a current ratio of 0.57, a quick ratio of 0.57 and a debt-to-equity ratio of 4.87.

Analyst Upgrades and Downgrades

CHDN has been the topic of a number of recent research reports. Citigroup reaffirmed an “outperform” rating on shares of Churchill Downs in a research note on Wednesday, January 14th. Wells Fargo & Company restated an “overweight” rating and issued a $125.00 target price (up from $115.00) on shares of Churchill Downs in a report on Monday, January 5th. Citizens Jmp increased their price target on shares of Churchill Downs from $142.00 to $146.00 and gave the company a “market outperform” rating in a report on Wednesday, January 14th. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Churchill Downs in a research report on Wednesday, December 24th. Eleven research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $135.10.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. Invesco Ltd. raised its holdings in shares of Churchill Downs by 8.0% in the fourth quarter. Invesco Ltd. now owns 169,001 shares of the company’s stock worth $19,229,000 after buying an additional 12,539 shares during the period. Corient Private Wealth LLC boosted its holdings in Churchill Downs by 786.6% during the 4th quarter. Corient Private Wealth LLC now owns 56,922 shares of the company’s stock valued at $6,477,000 after acquiring an additional 50,502 shares during the period. Alberta Investment Management Corp bought a new position in Churchill Downs in the 4th quarter valued at $1,525,000. Garton & Associates Financial Advisors LLC purchased a new stake in Churchill Downs in the fourth quarter worth $263,000. Finally, VARCOV Co. bought a new stake in shares of Churchill Downs during the fourth quarter worth $277,000. Hedge funds and other institutional investors own 82.59% of the company’s stock.

Key Churchill Downs News

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

• Positive Sentiment: Q4 earnings beat — CHDN reported $0.97 EPS vs. $0.83 consensus and revenue of $665.9M vs. $658.0M consensus, with a strong ROE (42.5%) and nearly 14% net margin. This supports near-term earnings momentum. GlobeNewswire: Q4 & Full-Year Results
• Positive Sentiment: New property opens — Churchill Downs opened Marshall Yards Racing & Gaming (a $40–45M investment), which should add local gaming revenue and support Oak Grove race meet economics. GlobeNewswire: Marshall Yards Opening
• Positive Sentiment: Operational growth in HRM facilities highlighted by third-party investor letters and coverage — analysts point to continued same-store and regional expansion benefits. InsiderMonkey: HRM Growth
• Neutral Sentiment: Analyst stance — Brokerages give a consensus “Moderate Buy,” suggesting cautious optimism but not unanimous conviction. AmericanBankingNews: Analyst Consensus
• Neutral Sentiment: Forward-looking commentary and models — market previews and earnings-forecast pieces outline expectations for 2026 but contain no material guidance surprises in coverage released so far. Benzinga: Earnings Forecast
• Negative Sentiment: Balance-sheet and valuation risks — CDI carries high leverage (debt/equity ~4.87) and low liquidity ratios (current and quick ~0.57), which may make investors cautious despite the beat; stock is trading below its 50- and 200-day moving averages.

About Churchill Downs

Churchill Downs Incorporated is a leading American entertainment and gaming company best known for operating the Churchill Downs racetrack in Louisville, Kentucky, home of the annual Kentucky Derby. Beyond its signature thoroughbred racing venue, the company manages a diversified portfolio of live racing facilities, casinos, and off-track betting operations. Its services encompass pari-mutuel wagering, historical horse racing machines, and online betting through its TwinSpires platform, reaching horse racing and sports betting enthusiasts nationwide.

In its live racing segment, Churchill Downs oversees a network of racetracks and racing festivals, offering year-round events in multiple states.