Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 4.9% year on year to $934.4 million. Its non-GAAP profit of $3.10 per share was 2.9% above analysts’ consensus estimates.
Shares of racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN)
jumped 4.6% in the afternoon session after the company posted strong second-quarter earnings that beat analyst expectations and announced a new share buyback program. The company reported record second-quarter revenue of $934.4 million and an all-time high adjusted EBITDA of $450.9 million, which surpassed analyst expectations. This strong performance was primarily driven by a record-breaking 151st Kentucky Derby that saw an all-time high for wagering. In addition to the strong earnings, the company's Board of Directors approved a new $500 million share repurchase program, replacing a prior authorization. Following the release, JMP Securities reiterated its Market Outperform rating and a $138 price target on the stock.
Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 4.9% year on year to $934.4 million. Its non-GAAP profit of $3.10 per share was 2.9% above analysts’ consensus estimates.
Churchill Downs (CHDN) reported mixed Q2 2025 results, with revenue slightly missing estimates at $934.4M (+4.9% YoY) but EPS beating at $3.10. Announced a $500M buyback program. Stock remained steady post-earnings.
Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN)
will be reporting results this Wednesday after the bell. Here’s what investors should know.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Most consumer discretionary businesses succeed or fail based on the broader economy. Unfortunately, the industry’s recent performance suggests demand may be fading as
discretionary stocks have pulled back by 13.3% over the past six months. This performance was noticeably worse than the S&P 500’s 2.4% fall.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Racing, gaming, and entertainment company Churchill Downs (NASDAQ:CHDN) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 8.7% year on year to $642.6 million. Its non-GAAP profit of $1.07 per share was 2.9% above analysts’ consensus estimates.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer.
However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.
Online casino and sports betting company Rush Street Interactive (NYSE:RSI)
will be reporting results tomorrow after market hours. Here’s what you need to know.
