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Market Overview

Earnings Preview: Churchill Downs

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On Wednesday, April 21, Churchill Downs (NASDAQ:CHDN) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Churchill Downs will report earnings of $0.56 per share on revenue of $287.45 million. Churchill Downs EPS in the same period a year ago totaled $0.05. Revenue was $252.90 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 1020.0%. Sales would be up 13.66% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.27 0.74 -0.55 0.16
EPS Actual 0.19 1.19 -0.53 0.05
Revenue Estimate 271.99 M 293.53 M 119.95 M 264.97 M
Revenue Actual 278.20 M 337.80 M 185.10 M 252.90 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 149.36%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Churchill Downs is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings