Nascar owner International Speedway races past 3Q revenue and earnings estimates but puts the brakes on guidance

International Speedway Corp (NASDAQ:ISCA) reported strong beats on Thursday in its fiscal third quarter 2018 earnings and revenue along with nine-month earnings and revenue but the company trimmed its guidance as shares of the operator of popular race courses in the NASCAR series in the US declined in premarket dealings. 

The company said earnings per share in the quarter reached US$0.26, more than quadruple the year-ago level of US$0.06 and easily beating the consensus of US$0.22. Revenue for the quarter came in at $159.3 million, surpassing both the year-ago level of $131.94 million and the consensus estimate of $152.93 million.

For the first nine months of the fiscal year, the company reported total revenues of $479.8 million, from $445.2 million in the same period last year. EPS was at $4.48, versus US$0.78 over the same period a year ago.

The company revised its guidance lower though for the rest of the fiscal year. It forecast revenue of $675 to $680 million, from the prior $680 to $695 million and lowered diluted earnings per share to $1.90-$1.95, from $1.90 to $2.10. Operating margin guidance was also reduced to 15%-15.5%, from 15.5%-16.5%.

Shares of ISCA dropped 5.3% to $40 having declined 1.5% to $41.60 in the premarket session. Shares had slipped 0.4% to close on Wednesday at $42.26.

“Our overall financial results for the third quarter are in line with expectations and the 2018 outlook,” said ISCA chief executive Lesa France Kennedy.

“During the quarter, Watkins Glen announced the fourth consecutive sell-out of reserved grandstand seats for the Monster Energy NASCAR Cup Series event. Also, the realigned date at Chicagoland Speedway is paving the path for a tradition of NASCAR racing in July, honoring service men and women with its thematic ‘Stars and Stripes’ weekend.”

She said they are “providing segmented experiences desired by fans…which we expect will stabilize recent headwinds facing admissions.”

READ: NASCAR owner International Speedway revenues get broadcast boost

International Speedway was founded in 1953. It is a leading promoter of motorsports-themed entertainment activities in the United States.

The company owns and/or operates 13 of the nation’s premier motorsports entertainment facilities, which in total, have approximately 763,500 grandstand seats and 548 suites.

ISCA’s facilities are located in six of the nation’s top 13 media markets and nearly 80% of the country’s population is located within the primary trading areas of its facilities. The company is based in Daytona Beach, Florida.

Story by ProactiveInvestors