CHDN

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Churchill Downs (NASDAQ:CHDN) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Gaming solutions companies provide the technology infrastructure behind gambling—slot machines, table game systems, lottery terminals, sports-betting platforms, and back-end software for casinos and online operators. Tailwinds include the ongoing legalization of sports betting across U.S. states and international markets, growing adoption of digital and mobile wagering, and casino operators' demand for data-driven player engagement tools. However, headwinds include stringent and evolving regulatory requirements across jurisdictions, high upfront R&D costs to develop next-generation platforms, and customer concentration risk given the limited number of large casino operators. Increasing competition from in-house technology development by major operators also pressures demand. The 6 consumer discretionary - gaming solutions stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.2% since the latest earnings results. Famous for hosting the Kentucky Derby, Churchill Downs (NASDAQ:CHDN) operates a horse racing, online wagering, and gaming entertainment business in the United States. Churchill Downs reported revenues of $980 million, up 4.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates. Interestingly, the stock is up 1.4% since reporting and currently trades at $89.76. Is now the time to buy Churchill Downs? Access our full analysis of the earnings results here, it’s free. Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE:RSI) is an operator of digital gaming platforms. Rush Street Interactive reported revenues of $393.8 million, up 46.3% year on year, outperforming analysts’ expectations by 7.1%. The business had a very strong quarter with full-year revenue and EBITDA guidance topping analysts’ expectations. Rush Street Interactive delivered the biggest analyst estimate beat, fastest revenue growth, and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 17.1% since reporting. It currently trades at $25.51. Is now the time to buy Rush Street Interactive? Access our full analysis of the earnings results here, it’s free. Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games. PlayStudios reported revenues of $54.99 million, down 7.3% year on year, falling short of analysts’ expectations by 3.6%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates. As expected, the stock is down 22.7% since the results and currently trades at $0.52. Read our full analysis of PlayStudios’s results here. Getting its start in daily fantasy sports, DraftKings (NASDAQ:DKNG) is a digital sports entertainment and gaming company. DraftKings reported revenues of $1.44 billion, down 4.6% year on year. This number came in 4.5% below analysts’ expectations. It was a slower quarter as it also recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. DraftKings had the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. The company reported 3.6 million users, up 9.1% year on year. The stock is up 14.2% since reporting and currently trades at $25.31. Read our full, actionable report on DraftKings here, it’s free. Established in Illinois, Accel Entertainment (NYSE:ACEL) is a provider of electronic gaming machines and interactive amusement terminals to bars and entertainment venues. Accel Entertainment reported revenues of $368.1 million, up 9.6% year on year. This result surpassed analysts’ expectations by 3.3%. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates. The stock is flat since reporting and currently trades at $12.19. Read our full, actionable report on Accel Entertainment here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in Churchill Downs, Incorporated? Here are five stocks we like better. Record quarter: Churchill Downs reported second-quarter revenue of $980 million and adjusted EBITDA of $477 million, helped by strong Kentucky Derby performance, historical racing machine growth and higher TwinSpires wagering. Strategic asset review: The company is exploring the sale of nine regional gaming properties, with potential proceeds aimed at reducing leverage, reinvesting in core businesses and repurchasing shares. Fair Grounds-related assets and HRM properties are excluded from the review. Growth and capital plans: Churchill Downs generated record first-half free cash flow of $474 million and plans continued investment in its $285 million Victory Run racetrack project, the Rockingham Grand Casino and share buybacks while maintaining leverage near 3.6–3.8 times. Churchill Downs: The Derby Is Just the Beginning Churchill Downs (NASDAQ:CHDN) reported record second-quarter revenue of $980 million and record adjusted EBITDA of $477 million, marking its sixth consecutive record second quarter for both measures. The company said results were supported by the 152nd Kentucky Derby, growth at historical racing machine properties and continued expansion in wagering services. Chief Executive Officer William C. Carstanjen said the company is also conducting a strategic review of nine wholly owned regional gaming properties and is exploring sales of those assets individually or in small groups. Churchill Downs plans to use potential proceeds to reduce leverage, selectively reinvest in its core operations and repurchase shares. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Why Flutter Entertainment May Be a Resilient Sports Betting Stock The Kentucky Derby was a central contributor to the quarter’s performance. Churchill Downs added Sunday racing on April 26, extending Derby Week and drawing more than 386,000 guests across the week, according to Carstanjen. The company cited gains in broadcast, attendance, sponsorship and wagering. Broadcast revenue rose $10 million under its new NBC agreement, while peak Kentucky Derby viewership exceeded 24 million viewers, up 12% from the prior year’s record. NBC also aired the Kentucky Oaks in primetime for the first time, generating an average audience of more than 2.4 million viewers. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Churchill Downs Stock: Could Tariff Fears Dampen Derby Gains? Derby Week generated more than 500 million social-media impressions, up 84% from 2025, Carstanjen said. The company also set records for all-sources wagering during the week. The Kentucky Derby remains the highest-wagered U.S. horse racing event, while the Kentucky Oaks ranks fourth, he added. Chief Financial Officer Marcia A. Dall said adjusted EBITDA in the Live and Historical Racing segment increased 7% year over year. Churchill Downs Racetrack adjusted EBITDA rose $16 million, and the company continues to expect Derby Week to generate $15 million to $18 million of incremental adjusted EBITDA in 2026 compared with the previous year. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? Carstanjen said the company is working to broaden Derby Week beyond the signature Saturday race, with individual identities and price points across the week’s events. The company intends to keep Kentucky Derby attendance around 150,000 guests, a level it believes supports the strongest guest experience, while directing additional demand to other days including Thurby and the Kentucky Oaks. Churchill Downs said its $285 million Victory Run project remains on schedule and on budget for completion before the 2028 Kentucky Derby. The First Turn development will include premium suites, covered box seating and high-end dining offerings. For the 2027 Derby, the company expects to operate temporary stadium seating, restrooms and concessions beneath the new Victory Run roof while interior and other permanent work continues. Other planned upgrades for the 2027 Derby include an expansion of the Homestretch Club’s interior amenities and redevelopment around the Winner’s Pagoda infield area. The company expects to add 1,400 temporary seats and test a cabana offering for roughly 500 guests along the turf course. It is also improving underground infrastructure to support a more level music-stage area and potential bar and lounge concepts. In New Hampshire, Rockingham Grand Casino in Salem remains on track for a mid-2027 opening. Carstanjen described the project as a state-of-the-art gaming and entertainment destination intended to attract guests from across New England. Following an internal strategic assessment, Churchill Downs is exploring options to sell nine wholly owned regional gaming properties: Calder Casino in Florida Terre Haute Casino in Indiana Hard Rock Casino in Iowa Oxford Casino in Maine Ocean Downs in Maryland Harrah’s and Riverwalk Casinos in Mississippi del Lago in New York Presque Isle in Pennsylvania The company has retained Macquarie Capital to assist with the process. Carstanjen said management believes individual sales or small groups of properties are most likely to maximize shareholder value. He characterized the properties as proven assets with histories of cash-flow generation and said the company is pleased with the current transaction environment. Churchill Downs does not intend to sell its Fair Grounds-related assets in Louisiana, which it said are strategically important to horse racing. It also does not plan to sell its historical racing machine, or HRM, properties in Kentucky, Virginia and New Hampshire. Carstanjen said the company’s strategy will be centered on three areas: the Kentucky Derby, HRM operations and TwinSpires. The company is seeking to expand Derby attendance, wagering, sponsorship and viewership, while also pursuing further HRM development and distribution of Exacta technology and electronic table games. Kentucky HRM properties generated a 10% year-over-year increase in adjusted EBITDA, aided by growth in western and northern Kentucky and the February opening of Marshall Yards. In Virginia, adjusted EBITDA rose 1%, with continued strength at The Rose offsetting competitive pressure at central Virginia locations following the opening of a Petersburg casino earlier this year. Virginia margins held at 46%, consistent with the prior-year quarter. Carstanjen said the company is considering referendums in Pulaski and Amherst County that could support additional HRM expansion. Colonial Downs has rights to 10 HRM licenses and 5,000 machines in Virginia, though the company is currently working within that machine limit. In Kentucky, the company’s eight HRM venues operate approximately 5,300 machines. Carstanjen said electronic table games represented about 1% of deployed machines and 2% of revenue, and that the company plans to introduce additional game titles over time. The Wagering Services and Solutions segment’s adjusted EBITDA rose more than 8%, driven by TwinSpires horse-racing wagering growth and expansion of the Exacta platform. TwinSpires also benefited from lower legal expenses than in the prior-year quarter, Dall said. Churchill Downs generated record first-half free cash flow of $474 million, or $6.70 per share. It spent $79 million on project capital and $38 million on maintenance capital during the first half, while maintaining full-year project capital spending expectations of $180 million to $220 million and maintenance capital spending expectations of $90 million to $110 million. Bank covenant net leverage stood at 3.7 times at the end of June. The company expects leverage to remain between 3.6 and 3.8 times through year-end, with a potential decline in 2027 based on projected cash flow and any completed regional gaming asset sales. As of June 30, Churchill Downs had $430 million remaining under its share repurchase authorization and intends to repurchase stock during the second half of the year. The company is also discussing refinancing alternatives with lenders for near-term debt maturities and its credit facility. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Churchill Downs Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Churchill Downs (CHDN) reported $980 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 4.9%. EPS of $3.45 for the same period compares to $3.10 a year ago. The reported revenue represents a surprise of +0.34% over the Zacks Consensus Estimate of $976.69 million. With the consensus EPS estimate being $3.51, the EPS surprise was -1.71%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Churchill Downs performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenue- Gaming: $270 million versus $262.43 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.4% change. Net Revenue- Wagering Services & Solutions: $178 million compared to the $164.76 million average estimate based on two analysts. The reported number represents a change of +12.4% year over year. Revenue- Live and Historical Racing: $575 million versus $546.86 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change. Adjusted EBITDA- All Other: $-26 million compared to the $-22.98 million average estimate based on two analysts. Adjusted EBITDA- Wagering Services & Solutions: $52 million versus the two-analyst average estimate of $52.13 million. Adjusted EBITDA- Gaming: $133 million versus $124.51 million estimated by two analysts on average. Adjusted EBITDA- Live and Historical Racing: $318 million compared to the $321.79 million average estimate based on two analysts. View all Key Company Metrics for Churchill Downs here>>> Shares of Churchill Downs have returned -0.5% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOUISVILLE, Ky., July 29, 2026 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN) (the "Company," "CDI," "we") today reported business results for the quarter ended June 30, 2026. Company Highlights Second quarter 2026 financial results, as compared to the prior year quarter: Churchill Downs Racetrack ran the 152nd Kentucky Derby with all-time record Derby Week contribution to Adjusted EBITDA. We ended second quarter of 2026 with net bank leverage of 3.7x. The summaries below present revenue from external customers and intercompany revenue from each of our reportable segments. All comparisons are against the applicable prior year period unless otherwise noted. Live and Historical Racing Second quarter 2026 revenue increased $34 million due to a $21 million increase from Churchill Downs Racetrack, a $12 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue. The Kentucky HRM increase was due to a $5 million increase from our Southwestern Kentucky venues, a $3 million increase from our Northern Kentucky venues, a $3 million increase from our Western Kentucky venues, and a $1 million increase from our Louisville venues. The Virginia HRM increase was due to a $5 million net increase primarily from our Northern Virginia venues, partially offset by a $4 million net decrease from our Central Virginia venues primarily from increased competition. Second quarter 2026 Adjusted EBITDA increased $21 million due to a $16 million increase from Churchill Downs Racetrack, a $6 million increase from our Kentucky HRM venues, and a $1 million increase from our Virginia HRM venues, partially offset by a $2 million decrease at our New Hampshire venues primarily due to the planned closure of our temporary Casino Salem venue during the construction of the Rockingham Grand Casino venue. The Churchill Downs Racetrack increase was primarily due to a record-breaking Derby Week, including increased NBC broadcast revenue, increased ticketing revenue, increased sponsorship and licensing revenue, and increased wagering revenue, partially offset by higher operating expenses. The Kentucky HRM increase was due to a $2 million increase from our Northern Kentucky venues, a $2 million increase from our Southwestern Kentucky venues, and a $2 million increase from our Western Kentucky venues. The Virginia HRM increase was primarily due to a $4 million net increase from our Northern Virginia venues, a $1 million increase from our Western Virginia venue, and a $1 million increase from our Southern Virginia venues, partially offset by a $5 million net decrease from our Central Virginia venues primarily from increased competition. Wagering Services and Solutions Second quarter 2026 revenue increased $10 million due to $9 million growth in our Horse Racing business from record-breaking Derby Week wagering and a $1 million increase from our Exacta business. Second quarter 2026 Adjusted EBITDA increased $4 million due to a $3 million increase from our Horse Racing business and a $1 million increase from our Exacta business. Gaming Second quarter 2026 revenue increased $4 million primarily due to an $8 million increase primarily from our New York, Indiana, and Maryland properties, partially offset by a $4 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025. Second quarter 2026 Adjusted EBITDA increased $6 million. Our equity investments increased $4 million from strong performance at Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio. Our wholly-owned gaming properties increased $4 million primarily from strong performance at our New York venue, partially offset by a $2 million decrease primarily from the cessation of HRM operations in Louisiana in May 2025. All Other Second quarter 2026 revenue is consistent with the prior year. All intercompany captive revenue is eliminated in consolidation. Second quarter 2026 Adjusted EBITDA decreased $5 million primarily due to a reduction of corporate legal-related fees in the prior year quarter and claim development within our captive insurance company. The Company's second quarter 2026 net income attributable to CDI was $241 million compared to $217 million in the prior year quarter. The following factors impacted the comparability of the Company's second quarter 2026 net income to the prior year quarter: a $4 million after-tax decrease in transaction, pre-opening, and other expenses; and a $2 million after-tax impairment charge in the prior year quarter related to a write-off of obsolete HRMs in Virginia. Excluding the items above, second quarter 2026 adjusted net income attributable to CDI increased $18 million primarily due to the following: a $10 million after-tax increase primarily driven by the results of our operations; a $4 million after-tax decrease in interest expense; and a $4 million after-tax increase in equity income from our unconsolidated affiliates. Conference Call A conference call regarding this news release is scheduled for Thursday, July 30, 2026 at 9 a.m. ET. Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at http://ir.churchilldownsincorporated.com/events.cfm, or by registering in advance via teleconference here. Once registration is completed, participants will be provided with a dial-in number containing a personalized conference code to access the call. All participants are encouraged to dial-in 15 minutes prior to the start time. An online replay will be available by noon ET on Thursday, July 30, 2026. A copy of the Company’s news release announcing quarterly results and relevant financial and statistical information about the period will be accessible at www.churchilldownsincorporated.com. Use of Non-GAAP Measures In addition to the results provided in accordance with GAAP, the Company also uses non-GAAP measures, including adjusted net income, adjusted diluted EPS, EBITDA (earnings before interest, taxes, depreciation and amortization), and Adjusted EBITDA. The Company uses non-GAAP measures as key performance measures of the results of operations for purposes of evaluating performance internally. These measures facilitate comparison of operating performance between periods and help investors to better understand the operating results of the Company by excluding certain items that may not be indicative of the Company's core business or operating results. The Company believes the use of these measures enables management and investors to evaluate and compare, from period to period, the Company’s operating performance in a meaningful and consistent manner. The non-GAAP measures are supplemental measures of our performance that is not required by, or presented in accordance with, GAAP, and should not be considered as an alternative to, or more meaningful than, net income or diluted EPS (as determined in accordance with GAAP) as a measure of our operating results. We use Adjusted EBITDA to evaluate segment performance, develop strategy, and allocate resources. We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. Adjusted net income and adjusted diluted EPS exclude discontinued operations net income or loss; net income or loss attributable to noncontrolling interests; transaction expense, which includes acquisition and disposition related charges, as well as legal, accounting, and other deal-related expense; pre-opening expense; and certain other gains, charges, recoveries, and expenses. Adjusted EBITDA includes our portion of EBITDA from our equity investments and the portion of EBITDA attributable to noncontrolling interests. Adjusted EBITDA excludes: Transaction expense, net, which includes: Stock-based compensation expense; Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs; Asset impairments, net; Gain on property sales; Legal reserves; Pre-opening expense; and Other charges, recoveries, and expenses For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the Consolidated Statements of Comprehensive Income. See the Reconciliation of Net Income to Adjusted EBITDA included herewith for additional information. About Churchill Downs Incorporated Churchill Downs Incorporated ("CDI") (Nasdaq: CHDN) has created extraordinary entertainment experiences for over 150 years, beginning with the Company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the acquisition, development, and operation of live and historical racing entertainment venues, the growth of the online wagering businesses, and the acquisition, development, and operation of regional casino gaming properties. https://www.churchilldownsincorporated.com/ This news release contains various "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "seek," "should," "will," "scheduled," and similar words or similar expressions (or negative versions of such words or expressions), although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; changes in, or new interpretations of, applicable tax laws or rulings that could result in additional tax liabilities; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, and related economic matters on our results of operations, financial conditions, and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; negative shifts in public opinion regarding gambling that could result in increased regulation of, or new restrictions on, the gaming industry; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine ("HRM") manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; cybersecurity risk, including cybersecurity breaches, loss or misuse of our confidential information as a result of a breach including customers’ personal information, or IT system operational disruptions, could lead to government enforcement actions or other litigation; costs of compliance with increasingly complex laws and regulations regarding data privacy and protection of personal information; reliance on our technology services and catastrophic events, system failures, errors or defects disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates, disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; whether the objective of a strategic alternative review process will be achieved; the terms, structure, benefits and costs of any strategic transaction; the timing of any strategic transaction and whether any strategic transaction will be consummated on the terms proposed or at all; the risk that the announcement or exploration of strategic alternatives could have an adverse effect on our ability to retain key personnel and maintain relationships with partners, suppliers, employees, shareholders and other business relationships; the risk of any unexpected costs or expenses resulting from the exploration of strategic alternatives; the risk of any litigation relating to the exploration of strategic alternatives or any strategic transaction; and other factors described under the heading "Risk Factors" in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Contact: Sam Ullrich(502) [email protected]

Churchill Downs (CHDN) came out with quarterly earnings of $3.45 per share, missing the Zacks Consensus Estimate of $3.51 per share. This compares to earnings of $3.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.71%. A quarter ago, it was expected that this racetrack operator and gambling company would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Churchill Downs, which belongs to the Zacks Gaming industry, posted revenues of $980 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.34%. This compares to year-ago revenues of $934.4 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Churchill Downs shares have lost about 21.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Churchill Downs has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Churchill Downs was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.31 on $698.94 million in revenues for the coming quarter and $7.14 on $3.02 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Century Casinos (CNTY), has yet to report results for the quarter ended June 2026. This casino operator is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Century Casinos' revenues are expected to be $152.1 million, up 0.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report Century Casinos, Inc. (CNTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) will be announcing earnings results this Wednesday after market close. Here’s what investors should know. Churchill Downs met analysts’ revenue expectations last quarter, reporting revenues of $663 million, up 3.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates. Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Churchill Downs’s revenue to grow 4.8% year on year, in line with the 4.9% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Churchill Downs has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Churchill Downs’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%. Read our full analysis of AMC Entertainment’s results here and Delta’s results here. In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. Churchill Downs is down 3% during the same time and is heading into earnings with an average analyst price target of $135.58 (compared to the current share price of $88.15). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

The market expects Churchill Downs (CHDN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This racetrack operator and gambling company is expected to post quarterly earnings of $3.51 per share in its upcoming report, which represents a year-over-year change of +13.2%. Revenues are expected to be $974.36 million, up 4.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.13% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Churchill Downs, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Churchill Downs will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Churchill Downs would post earnings of $1.06 per share when it actually produced earnings of $1.21, delivering a surprise of +14.15%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Churchill Downs doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Churchill Downs, Incorporated (CHDN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Revenue: Record first quarter net revenues of $663 million. Adjusted EBITDA: Record adjusted EBITDA of $257 million. Live and Historical Racing Segment EBITDA: Increased by more than $11 million or 11% compared to the prior year quarter. Kentucky HRMs EBITDA: Increased more than $9 million or 17% compared to the prior year quarter. Virginia EBITDA: Increased by $3 million or 6% compared to the prior year quarter. Wagering Services and Solutions Segment EBITDA: Increased 8%. Free Cash Flow: Generated $276 million or $3.94 per share. Project Capital Expenditures: $40 million in the quarter; full year expectation of $180 million to $220 million. Maintenance Capital Expenditures: $19 million in the quarter; full year expectation of $90 million to $110 million. Bank Covenant Net Leverage: 3.9 times. Warning! GuruFocus has detected 4 Warning Signs with CHDN. Is CHDN fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Churchill Downs Inc (NASDAQ:CHDN) reported record first-quarter net revenues of $663 million and adjusted EBITDA of $257 million, indicating strong execution and growth momentum. The successful opening of the Marshall Yards Historical Racing Machine venue in Kentucky on time and on budget is contributing positively to job creation and shareholder value. Significant progress in Virginia with 48 race dates planned for 2026 and successful legislative outcomes that support a favorable operating environment. Strategic acquisition of intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes, enhancing CHDN's portfolio of iconic racing events. Continued investment in enhancing the Kentucky Derby experience, including renovations and new hospitality offerings, aiming for long-term growth and increased international reach. Performance at some Virginia properties was impacted by weather and increased competition, requiring optimization of marketing and operating strategies. The cessation of HRM operations in Louisiana and weather-related disruptions affected the Gaming segment's performance. Increased competition in Virginia poses challenges, necessitating strategic adjustments to maintain market position. The introduction of tariffs last year impacted the sales process for the Kentucky Derby, although this year's cycle has been smoother. The legislative process in Virginia remains unpredictable, with potential future changes in gaming laws that could affect operations. Q: Can you detail more about the fee structure for the Preakness IP and your long-term strategy there? A: The fee structure in Maryland is a two-part system: a base fee of $3 million that grows at 2.5% annually starting in 2028, and 2% of handle for the Black-Eyed Susan day plus the Preakness day. Last year, these events combined for about $140 million in handle. We view the Preakness as an iconic asset with tremendous potential and are excited to help restore it to its former glory. - William Carstanjen, CEO Q: How does the investment in Preakness fit into your capital allocation strategy? A: The Preakness is a unique and iconic asset, similar to the Kentucky Derby, with tremendous potential and history. We are committed to working with the state to help transition the property into something great, consistent with our strategy of investing in unique assets with long-term value. - William Carstanjen, CEO Q: How do you measure success in growing the international customer base for the Kentucky Derby? A: Success is measured by increased attendance, sponsorships, and partnerships from international markets. We aim to attract high-end customers and sponsors, leveraging the Derby's global brand. Our focus is on building international interest, particularly in markets with a strong interest in Thoroughbred racing. - William Carstanjen, CEO Q: Can you provide insights into the legislative win in Virginia and its implications? A: The legislative process in Virginia is part of a healthy democratic process with diverse views. The recent outcomes support a stable environment for us, and we are encouraged by the dialogue and discussions that reflect a positive progression on gaming issues. We remain committed to investing in Virginia. - William Carstanjen, CEO Q: How do you view the potential for digital expansion in states where you operate, like Virginia? A: We approach each state with a series of strategies and fallback positions. While iGaming is not a preferred public policy, we remain flexible and responsive to legislative changes, ensuring we make the best out of the circumstances we face. - William Carstanjen, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.