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Investing.com - Churchill Downs (NASDAQ:CHDN) reported second-quarter 2025 results with revenue in line with expectations but EBITDA exceeding analyst forecasts, according to JMP Securities. The company, which currently trades at a P/E ratio of 19x and has achieved a perfect Piotroski Score of 9 according to InvestingPro data, demonstrates strong financial health with trailing twelve-month revenue of $2.79 billion.
The company posted revenue of $934 million for the quarter, matching consensus estimates, while its EBITDA of $451 million surpassed expectations by 2%. All three of Churchill Downs’ business segments outperformed EBITDA consensus estimates, with Live and Historical Racing beating by 1%, Wagering Services and Solutions by 4%, and Gaming by 1%.
Historical Racing Machines (HRMs) in Kentucky delivered their strongest quarterly EBITDA performance ever, increasing 29% year-over-year with approximately 47% margins and 70% flow-through. This record performance came despite headwinds from the ramp-up of the Owensboro property, which JMP analysts view as positive for the overall Kentucky business margin profile as the location matures.
The Exacta segment continued to drive bottom-line improvements across Churchill Downs’ HRM portfolio, achieving a 75% margin—its highest since acquisition. JMP expects further margin improvements as Exacta units are added across several jurisdictions in the second half of 2025.
JMP Securities reiterated its Market Outperform rating on Churchill Downs with a price target of $138.00, noting that TwinSpires’ handle and revenue performance represented a "solid upside surprise" driven by strong results during the Kentucky Derby. For deeper insights into Churchill Downs’ valuation and growth prospects, including 12 additional exclusive ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Churchill Downs Incorporated reported second-quarter earnings that surpassed analyst expectations. The company achieved adjusted earnings per share of $2.99, slightly higher than the projected $2.96. Revenue reached a record $934.4 million, exceeding the consensus estimate of $919.53 million and marking a 5% increase from the previous year. This performance was largely driven by strong results in its Live and Historical Racing segment, alongside record wagering at the Kentucky Derby. These developments highlight the company’s robust financial health and operational success during the quarter.
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