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Churchill Downs Incorporated (NASDAQ:CHDN) stock has experienced a notable downturn, touching a 52-week low of $96.52, marking a sharp decline from its 52-week high of $150.21. According to InvestingPro data, the company maintains a "GOOD" overall financial health score despite recent market challenges. This latest price level reflects a significant retreat from better-performing times, with the company’s shares having declined by 23.52% over the past year. The stock’s current challenges are highlighted by four analysts revising their earnings expectations downward, though analyst targets suggest potential upside with a low target of $125 and a high of $172. Investors are closely monitoring the stock as it navigates through this challenging period, marked by this new low point. The 1-year change data underscores the extent of the stock’s depreciation, signaling caution to shareholders and potential investors as they consider the company’s future prospects amidst a volatile market environment. For deeper insights and additional ProTips about CHDN’s valuation and future potential, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Churchill Downs Incorporated reported first-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $1.02, falling short of the projected $1.11. Revenue reached $642.6 million, marking a 9% increase year-over-year, yet it still fell below the anticipated $649.69 million. Despite the earnings miss, the company achieved record quarterly revenue, driven by growth in its Live and Historical Racing segment, notably due to new openings in Virginia and Kentucky. The Terre Haute Casino (EPA:CASP) Resort, which opened in April 2024, contributed significantly to a $24 million increase in the Gaming segment’s revenue.
Citizens JMP reaffirmed its Market Outperform rating for Churchill Downs, maintaining a price target of $157.00, following the company’s first-quarter EBITDA of $245 million, which met consensus expectations. The company’s Wagering Services and Solutions division, previously known as TwinSpires, exceeded EBITDA expectations by 9%, providing a positive highlight for the quarter. However, the Gaming and Live and Historical Racing segments faced declines of 1% and 2%, respectively, due to adverse weather conditions and an unfavorable calendar. Churchill Downs continued its capital return program, repurchasing $89.4 million of shares in the first quarter and receiving board approval for a new $500 million share repurchase authorization. Looking forward, management did not provide specific guidance but emphasized ongoing initiatives to enhance the Kentucky Derby experience and expand gaming operations.
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