Churchill Downs Beats on the Top Line
Churchill Downs (NAS: CHDN) reported earnings on March 12. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Churchill Downs met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved. The non-GAAP profit was a surprise, as analysts had predicted a loss.
Gross margin dropped, operating margin increased, and net margin improved.
Churchill Downs logged revenue of $149.3 million. The one analyst polled by S&P Capital IQ expected sales of $148.7 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $174.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.25. The one earnings estimate compiled by S&P Capital IQ predicted -$0.01 per share on the same basis. GAAP EPS were $0.44 for Q4 compared to -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.8%, 8,450 basis points worse than the prior-year quarter. Operating margin was 4.2%, 570 basis points better than the prior-year quarter. Net margin was 5.1%, 620 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is -$0.15.
Next year's average estimate for revenue is $704.9 million. The average EPS estimate is $3.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 53 members out of 74 rating the stock outperform, and 21 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give Churchill Downs a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Churchill Downs is buy, with an average price target of $70.50.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.