Categories AlphaGraphs, Earnings

International Speedway stock jumps 7% on Q2 earnings beat

International Speedway Corp. (ISCA), which owns and manages racing facilities, reported above-consensus earnings for the second quarter aided by higher revenues from motorsports events. The earnings were, meanwhile, partially offset by softness in admission fees. The stock jumped nearly 7% following the announcement.

Earnings advanced to $16.67 million or $0.38 per share from $13.23 million or $0.29 per share in the second quarter of last year. Adjusted earnings, excluding one-time items, climbed 23% annually to $0.37 per share.

International Speedway Corporation second quarter 2018 earnings
International Speedway Q2 2018 Earnings Infographic

Second-quarter revenues moved up 4% to $171.68 million, owing to a general uptick in motorsport and other events. Meanwhile, the top-line suffered headwinds from unfavorable weather conditions and muted sales at live events, which dragged admission revenues.

“Our overall financial results for second quarter are in line with expectations and the 2018 outlook, despite admissions headwinds faced during the quarter. We remain committed to our consumer focused sales and marketing initiatives, providing segmented experiences desired by fans for a good value, which have proven to yield positive results against these trends,” said CEO Lesa France Kennedy.

Revenues moved up 4%, aided by a general uptick in motorsport and other events

During the second quarter, the board of directors approved a 9.3% hike in the annual dividend for 2018. The company forecasts a 4-5% increase in dividends for 2019 and beyond. In the six months ended May 31, it repurchased 156,241 shares for about $6.4 million.

Looking ahead, the Florida-based company anticipates full-year earnings in the range of $1.90 per share to $2.10 per share. Revenues are estimated to be between $680 million and $695 million in fiscal 2018, and operating margin in the 15.5- 16.5% range.

The company expects to incur capital expenditure of up to $500 million for the existing facilities over the next three years, and an additional of $107 million in connection with development of the One Daytona entertainment center.

Among competitors, North Carolina-based Speedway Motorsports (TRK) is scheduled to announce financial results for its most recent quarter on July 26, 2018.

Shares of International Speedway gained around 10% since the beginning of the year and 24% in the last twelve months. The hectic buying activity after the earnings report resulted in sharp increase in the stock price Thursday.

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