Core Insights - Churchill Downs (CHDN) reported revenue of $665.9 million for the quarter ended December 2025, reflecting a 6.7% increase year-over-year and a surprise of +0.78% over the Zacks Consensus Estimate of $660.73 million [1] - The company's EPS for the quarter was $0.97, up from $0.92 in the same quarter last year, resulting in an EPS surprise of +14.56% compared to the consensus estimate of $0.85 [1] Revenue Performance - Gaming revenue was reported at $250.3 million, slightly above the estimated $249.06 million, but this represents a -2.8% change compared to the year-ago quarter [4] - Net revenue from Wagering Services & Solutions was $104.9 million, exceeding the average estimate of $103.17 million [4] - Revenue from Live and Historical Racing reached $319.4 million, surpassing the estimated $308.09 million, marking a +15.9% change year-over-year [4] Adjusted EBITDA Metrics - Adjusted EBITDA for All Other segments was reported at $-26 million, below the average estimate of $-23.45 million [4] - Adjusted EBITDA for Wagering Services & Solutions was $42 million, exceeding the average estimate of $37.05 million [4] - Adjusted EBITDA for Gaming was $108.9 million, slightly below the estimated $113.04 million, while for Live and Historical Racing it was $122.1 million, marginally above the estimate of $121.65 million [4] Stock Performance - Over the past month, shares of Churchill Downs have returned -4%, compared to a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Churchill Downs (CHDN) reported $683 million in revenue for Q3 2025, marking an 8.7% year-over-year increase and a surprise of +1.36% over the Zacks Consensus Estimate of $673.83 million [1] - The EPS for the same quarter was $1.09, compared to $0.97 a year ago, resulting in an EPS surprise of +12.37% against the consensus estimate of $0.97 [1] Revenue Breakdown - Gaming revenue was reported at $265.5 million, slightly above the estimated $264.81 million, but reflecting a -1.8% change year-over-year [4] - Net revenue from Wagering Services & Solutions reached $118 million, exceeding the estimated $114.54 million [4] - Revenue from Live and Historical Racing was $305.7 million, surpassing the average estimate of $289.64 million, with a year-over-year increase of +21.1% [4] Adjusted EBITDA Performance - Adjusted EBITDA for All Other segments was reported at -$23.4 million, close to the average estimate of -$23.58 million [4] - Adjusted EBITDA for Wagering Services & Solutions was $46 million, exceeding the estimated $42.71 million [4] - Adjusted EBITDA for Gaming was $123.3 million, above the average estimate of $116.22 million, while Live and Historical Racing's adjusted EBITDA was $116.4 million, also surpassing the estimate of $112.13 million [4] Stock Performance - Over the past month, shares of Churchill Downs have returned -0.2%, in contrast to the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - Churchill Downs Incorporated (NASDAQ: CHDN) is initiated with a Strong Buy rating and a price target of $131, highlighting its position as a leading U.S. racing, online wagering, and gaming operator across three fast-growing segments: Live and Historical Racing, TwinSpires, and Gaming [1] - The Strong Buy rating is based on a structured, repeatable framework that identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation [1] - Moretus Research emphasizes rigorous fundamental analysis combined with a high-signal, judgment-driven process, focusing on underappreciated companies undergoing structural change or temporary dislocation [1] Group 2 - Valuation methods used by Moretus Research are based on pragmatic, sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability, simplicity, and relevance [1] - The research aims to provide professional-grade insights, actionable valuation, and a strong filter for what truly matters in modern equity analysis, reflecting a deep respect for capital, discipline, and long-term compounding [1]