What factors could drive CHDN's EPS surprise in 2025?

Churchill Downs' (CHDN) EPS surprise in 2025 could be driven by several key factors: 1. **Revenue Growth from Key Events and Initiatives**: Churchill Downs is set to benefit from enhancements to the Kentucky Derby, which include significant renovation projects at Churchill Downs Racetrack. These upgrades are expected to enhance the Derby experience and boost revenue potential. Additionally, the company's investments in Historical Racing Machines (HRM) technology and strategic expansions in gaming and entertainment venues are likely to contribute to revenue growth. 2. **Strategic Investments in Technology and International Expansion**: The company's focus on expanding its online wagering platform and enhancing pari-mutuel content and technology services to B2C sports betting platforms could drive revenue growth. Furthermore, the expansion of HRM entertainment venues in various states and the introduction of new venues under construction suggest a strategic push for growth in the gaming sector. 3. **Financial Discipline and Shareholder-Friendly Policies**: Churchill Downs has a history of financial discipline and a commitment to enhancing shareholder value, as evidenced by a consistent increase in dividends and a strong free cash flow. These policies could positively influence earnings and potentially lead to an EPS surprise. 4. **Market Adaptability and Resilience**: The company's ability to adapt to changing market conditions and maintain a strong market position, as demonstrated by its resilience during challenging times, could lead to better-than-expected earnings. In summary, Churchill Downs' EPS surprise in 2025 is likely to be driven by revenue growth from key events and initiatives, strategic investments in technology and international expansion, financial discipline, and the company's adaptability and resilience in the market.