Why did CHDN's EPS outperform forecasts in early 2024?

Churchill Downs' EPS outperformed forecasts in early 2024 due to strong revenue growth across its diversified segments:

1. **Live and Historical Racing Segment**: The annual Kentucky Derby generated significant interest and increased viewership, contributing to a 20% revenue increase compared to the same quarter of the previous year. The historical racing segment also saw a notable $10.3 million revenue increase in Kentucky.
2. **Online Sports Betting**: The company's online sports betting product, TwinSpires, experienced a 15% revenue spike this quarter. This growth reflects the increasing popularity and expansion of online gambling services.
3. **Casinos and Gaming**: Churchill Downs' gaming arm, which includes casinos in states where legal, achieved an 11% revenue jump. The opening of new properties such as The Rose Gaming Resort in Northern Virginia contributed to this growth.

These segments' strong performance, combined with effective cost management, likely resulted in the EPS outperformance. It is also indicative of the company's strategic expansion into diverse gaming platforms and its ability to capitalize on emerging market opportunities.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|CHDN|CHDN.O|Churchill Downs|2024 Q1|0.3|1.08|185|
|CHDN|CHDN.O|Churchill Downs|2024 Q2|0.18|2.79|185|
|CHDN|CHDN.O|Churchill Downs|2024 Q3|-0.09|0.86|185|
|CHDN|CHDN.O|Churchill Downs|2024 Q4|-0.03|0.95|185|