By Kelly Cloonan
Shares of Churchill Downs fell after the company reported lower profit and paused three capital projects because of uncertain construction costs amid current trade and economic conditions.
The stock fell 14% to $90.10 on Thursday. Shares have declined 27% over the past 12 months.
The Louisville, Ky.-based horse racetrack operator and gambling company on Wednesday said it is pausing plans for three multiyear construction projects because of increasing uncertainty around construction costs related to tariff disputes and current macroeconomic conditions.
Churchill Downs will assess the economic landscape over the coming months to evaluate changes to the timing and sequencing of these projects, the company said.
"We have a responsibility to be disciplined given the recent changes in the economic environment," Chief Executive Bill Carstanjen said.
The company also announced plans to renovate some of its existing real estate for about $25 million to $30 million. The company expects to complete the new projects in April 2026.
For the first quarter, the company reported a profit of $76.7 million, or $1.02 a share, down from $80.4 million, or $1.08 a share, a year prior.
Adjusted earnings per share were $1.07. Analysts polled by FactSet expected $1.04 per share.
Revenue rose 9% to $642.6 million compared with $590.9 million a year ago. Analysts expected $642.8 million.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 24, 2025 13:07 ET (17:07 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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