Can Churchill Downs, Incorporated (NASDAQ:CHDN) Beat $4.5 Per Share?

Sell-side analysts on Wall Street are anticipating that Churchill Downs, Incorporated (NASDAQ:CHDN) will report earnings of $0.51 per share when the company issues their quarterly report today.  This is the consensus EPS number according to data from Zack’s Research.  How the estimated EPS differs from the actual earnings number is what investors will be paying particularly close attention to. 

Rolling into the next round of earnings reports, investors and analysts will be intently monitoring actual reported numbers. Often times, analysts will update estimates as the earnings date nears. Even the slightest estimate adjustments can be a big deal to investors closely following the company. For long-term investors, the most recent quarterly numbers might not seem like a huge deal. However, if the stock hasn’t been performing up to expectations recently, investors may want to do a little more research on the stock to make sure they know what is going on. Trading around earnings announcements can be a tricky endeavor. Inexperienced traders may choose to stay on the sidelines until after the dust has settled. Large differences or surprises that are seen when actuals land far away from what analysts had projected may cause short-term volatility in the stock price. Even if investors and traders are convinced that the company will easily beat estimates, this may not mean that the stock price is going to absolutely reflect the beat. Traders might be a little more cautious when attempting to capitalize on increased volatility that typically accompanies earnings releases.

Most recently Churchill Downs, Incorporated (NASDAQ:CHDN) reported a surprise factor of -13.73%. The actual number was $-0.07 away from the Zacks consensus just prior to the actual release. A significant surprise factor can lead to stock swings in the price in the hours and days following the earnings report.

Projected Stock Movement
Research analysts covering shares of Churchill Downs, Incorporated (NASDAQ:CHDN) are anticipating on a consensus basis that the stock will reach $172.666 within the next 52 weeks. Of the analysts providing short term targets, the most bullish analyst has a $184 target on the stock. On the other end, the most conservative has a short term target of $160. This is based on the 3 analysts taken into consideration by Zacks. The consensus price target was last revised on 2017-04-28.

Zacks also provides a simplified scale for analyst recommendations. They use a one to five scale where they translate brokerage firm Buy/Sell/Hold recommendations into an average broker rating. A low number in the 1-2 range typically indicates a Buy, 3 represents a Hold and 4-5 represents a consensus Sell rating. Churchill Downs, Incorporated (NASDAQ:CHDN) currently has an ABR of 2.2 heading into today’s announcement. This number is also based on the 3 sell-side firms polled by Zacks.

This article is informational purposes only and should not be considered a recommendation to buy or sell Churchill Downs, Incorporated. 

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