CHDN
Churchill Downs Inc (CHDN) Q1 2026 Earnings Call Highlights: Record Revenues and Strategic ...
Article Summary
BUY- 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 with the successful opening of the Marshall Yards Historical Racing Machine venue in Kentucky on time and on budget contributing positively to job creation and shareholder value.
- Churchill Downs, continued strategic acquisition of intellectual property rights to the Preakness Stakes and Black-Eyed Susan Stakes, enhancing its portfolio of iconic racing events, and continued investment in enhancing the Kentucky Derby experience including renovations and new hospitality offerings aiming for long-term growth and increased international reach.
- However, performance at some Virginia properties was impacted by weather and increased competition requiring optimization of marketing and operating strategies, with cessation of HRM operations in Louisiana and weather-related disruptions affecting Gaming segment's performance.
- The introduction of tariffs last year impacted sales process for Kentucky Derby, although this year's cycle has been smoother, and the legislative process in Virginia remains unpredictable with potential future changes in gaming laws that could affect operations.
- Bank Covenant Net Leverage of 3.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.8% | 25% | 35.0 ptsBelow Screener (5.8%) - Weak growth |
| EPS Growth Next 5Y ? | 6.1% | 25% | 20.0 ptsWeak (6.1%) - Low expectations |
| Target Price Upside ? | 42.7% | 20% | 95.0 ptsHuge Upside (42.7%) - Target: $139.73 vs Current: $97.91 |
| Gross Margin % ? | 33.8% | 15% | 40.0 ptsModerate (33.8%) - Adequate margins |
| Drawdown from 52-Wk High ? | -17.3% | 15% | 40.0 ptsMild Pullback (-17.3%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CHDN
- Churchill Downs Incorporated operates live and historical racing entertainment venues, online wagering businesses, and regional casino gaming properties in the United States.
- It operates through three segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming.
- The Live and Historical Racing segment engages in live and historical pari-mutuel racing related activities at Churchill Downs Racetrack and its historical racing properties in Kentucky, Virginia, and New Hampshire; provides racing event-related services, including admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services, as well as food and beverages services.
- The Wagering Services and Solutions engages in pari-mutuel wagers through TwinSpires, which operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates dollar wagering; provides the Bloodstock Research Information Services platform for horse racing statistical data; offers streaming video of live horse races, replays, and an assortment of racing and handicapping information; and provides technology services to third parties.
- This segment also operates retail and online sports betting businesses, United Tote, which manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses, and Exacta, which provides central determinant system technology in HRMs.
- The Gaming segment operates the casino properties and associated racetracks, which include slot machines, table games, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and other miscellaneous operations.
- Churchill Downs Incorporated was founded in 1875 and is headquartered in Louisville, Kentucky.