Churchill Downs Reports Record Q4 Revenue, Earnings Miss Estimates

Churchill Downs reported a fourth-quarter revenue of $624.2 million, an 11% increase year-over-year, although its earnings of $0.92 per share fell short of the expected $0.93. The revenue growth was largely driven by the opening of the Terre Haute Casino Resort in Indiana, which contributed significantly to overall performance, despite some declines at other properties due to regional gaming softness and increased competition. For the full year 2024, the company achieved record revenue of $2.7 billion, also an 11% increase, and adjusted earnings rose to $1.2 billion. The operator is undertaking a major expansion project at the Kentucky Derby racetrack, the largest in its 150-year history, aimed at enhancing guest experiences. Despite these positive trends, the company's stock has underperformed compared to the broader market this year, raising questions about future performance. Management's outlook during the upcoming earnings call will be crucial for investors tracking the company's next steps.