Racetrack operator International Speedway (Nasdaq: ISCA) reported weaker than expected earnings and revenues for the second quarter. The company also reaffirmed its guidance for fiscal 2019. The stock lost about 2% early Wednesday following the report.
During the three-month period, adjusted net income was $15.9 million or $0.36 per share, slightly lower than $16.4 million or $0.37 per share reported a year earlier. Unadjusted earnings declined to $0.35 per share from $0.38 per share in the second quarter of 2018. Analysts had predicted an increase in earnings.
The weakness in the bottom-line performance reflects a 2.1% annual decrease in revenues to $168.08 million, which also fell short of expectations. The top-line was negatively impacted by the termination of sponsorship agreements with a key marketing partner, resulting in a sharp fall in admissions and sponsorships compared to the prior-year period.
The weakness in the bottom-line performance reflects a 2.1% annual decrease in revenues to $168.08 million
“We continue our consumer-focused sales and marketing initiatives, providing segmented experiences desired by fans for a good value. We believe prudent reinvestment in our facilities and strategic developments will continue to position ISC for long-term growth and deliver shareholder value,” said CEO Lesa France.
During the quarter, the company hosted six Monster Energy NASCAR Cup weekends and Bike Week at Daytona. It said the redevelopment of Talladega Superspeedway, an iconic race venue, is progressing as per schedule.
Meanwhile, the management reaffirmed its full-year 2019 revenue guidance in the range of $685 million to $705 million and operating margin between 13.5% and 16.0%. It continues to expect full-year earnings in the range of $1.85 per share to $2.15 per share and the effective tax rate between 25% and 26%.
Shares of International Speedway closed the last trading session slightly higher but dropped on Wednesday morning. The stock has gained about 5% since the beginning of the year.