Racing, gaming, and entertainment company Churchill Downs (NASDAQ: CHDN) will be reporting results this Wednesday after the bell. Here’s what investors should know.

Churchill Downs met analysts’ revenue expectations last quarter, reporting revenues of $642.6 million, up 8.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.

Is Churchill Downs a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Churchill Downs’s revenue to grow 3.5% year on year to $921.6 million, slowing from the 15.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.00 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 9 analysts). Churchill Downs has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Churchill Downs’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 5.8%, and Nike reported a revenue decline of 12%, topping estimates by 3.4%. Levi's traded up 11.1% following the results while Nike was also up 15.2%.

Read our full analysis of Levi’s results here and Nike’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 11.3% on average over the last month. Churchill Downs is up 5.5% during the same time and is heading into earnings with an average analyst price target of $132.68 (compared to the current share price of $105.36).

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