Overview

* Churchill Downs Q3 revenue rises 9% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, despite net income decline due to impairment

Outlook

* Company expects favorable impact on cash tax expense due to new federal tax provisions

* Company anticipates increased cash flow from operating activities in current year

Result Drivers

* VIRGINIA HRM EXPANSION - Revenue increase driven by additional historical racing machines in Virginia, contributing $30.1 mln

* KENTUCKY HRM GROWTH - Revenue boost from Kentucky historical racing machines, contributing $20.9 mln

* INSURANCE RECOVERY - Virginia HRM venues benefited from $3.5 mln insurance recovery related to delayed opening

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $683 mln $671.20

Revenue mln (11

Analysts

)

Q3 Beat $1.09 $1.02 (6

Adjusted Analysts

EPS )

Q3 EPS $0.54

Q3 Net $38.10

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 27.1% above its October 21 closing price of $96.61

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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(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.)