The 10-second takeaway
For the quarter ended June 30 (Q2), Churchill Downs missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share increased slightly.
Gross margins expanded, operating margins grew, net margins dropped.
Churchill Downs reported revenue of $283.8 million. The five analysts polled by S&P Capital IQ anticipated revenue of $291.8 million on the same basis. GAAP reported sales were 4.8% higher than the prior-year quarter's $270.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $2.81. The five earnings estimates compiled by S&P Capital IQ anticipated $2.90 per share. GAAP EPS of $2.81 for Q2 were 1.4% higher than the prior-year quarter's $2.77 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 39.0%, 60 basis points better than the prior-year quarter. Operating margin was 28.9%, 40 basis points better than the prior-year quarter. Net margin was 17.7%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $182.9 million. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $796.4 million. The average EPS estimate is $3.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 82 rating the stock outperform, and 23 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Churchill Downs a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Churchill Downs is outperform, with an average price target of $89.00.
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