Racetrack operator Churchill Downs' Q3 revenue beats estimates

Churchill Downs

22/10/2025 21:11

Overview

Churchill Downs Q3 revenue rises 9% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, despite net income decline due to impairment

Outlook

Company expects favorable impact on cash tax expense due to new federal tax provisions

Company anticipates increased cash flow from operating activities in current year

Result Drivers

VIRGINIA HRM EXPANSION - Revenue increase driven by additional historical racing machines in Virginia, contributing $30.1 mln

KENTUCKY HRM GROWTH - Revenue boost from Kentucky historical racing machines, contributing $20.9 mln

INSURANCE RECOVERY - Virginia HRM venues benefited from $3.5 mln insurance recovery related to delayed opening

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$683 mln
$671.20 mln (11 Analysts)
Q3 Adjusted EPS
Beat
$1.09
$1.02 (6 Analysts)
Q3 EPS
$0.54
Q3 Net Income
$38.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "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 Inc is $132.56, about 27.1% above its October 21 closing price of $96.61

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX3j1wpc

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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.)