Overview

* Churchill Downs Q2 revenue rises 5% to $934.4 mln, beating analysts' expectations

* Adjusted EBITDA reaches record $450.9 mln, up 1% from prior year

* Co announces $500 mln share repurchase program

Outlook

* Company expects favorable impact from new federal tax provisions on cash flow

* Company to acquire 90% of Casino Salem for $180 mln

* Company to develop gaming, entertainment destination in Salem, NH

Result Drivers

* KENTUCKY DERBY - Record wagering during Derby Week and increased licensing/sponsorship revenue boosted results

* HRM VENUES - Revenue growth driven by Virginia and Kentucky HRM venues, with notable increases from Northern Virginia and Louisville

* GAMING DECLINE - Gaming segment revenue fell due to cessation of operations in Louisiana and higher state gaming taxes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $934.40 $924.80

Revenue mln mln (10

Analysts

)

Q2 EPS $2.99

Q2 Net $216.90

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the casinos & gaming peer group is "buy"

* Wall Street's median 12-month price target for Churchill Downs Inc ( CHDN ) is $132.56, about 18.5% above its July 22 closing price of $108.06

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)