Entertainment, wagering, and racing company Churchill Downs Incorporated (CHDN -2.32%) reported its first-quarter results today after the stock market closed. While the company's revenue predictably fell with the postponement of the iconic Kentucky Derby race to September and other negative effects of the COVID-19 pandemic, it still beat some analyst expectations. Churchill Downs noted it also has robust liquidity.

Analyst consensus estimates put net revenue for the quarter at $251.4 million, down 5.3% year over year, while earnings per share were forecast at $0.33, down 47.6% from Q1 2019.

A bay thoroughbred jumping.

Image source: Getty Images

In fact, Churchill Downs narrowly beat analyst expectations by posting $252.9 million in net revenue. However, it fell short on earnings, delivering adjusted diluted EPS of just $0.05 per share, a 92% plunge from its Q1 2019 $0.63 EPS. Overall, the company generated $2.0 million in adjusted net income for the first quarter of 2020 ending on March 31, compared with $25.5 million last year. The shortfall, as expected, results from casino and racetrack closures in response to the novel coronavirus.

Churchill Downs reports that it ended the quarter with $700.9 million in cash reserves after drawing down its revolving credit facility. It states that Q2 2020 will probably be "materially impacted," since it postponed the Kentucky Oaks racing event and its casinos remain closed indefinitely.

The company struck a positive note regarding its ability to weather the current viral crisis. Noting its strong cash reserves and its plans to cut capital expenditures and maintenance costs, it says it can pay for its business operations and meet its financial obligations for at least a year.

Churchill Downs will hold a live earnings conference call tomorrow at 9 a.m. Eastern time.