The 10-second takeaway
For the quarter ended Nov. 30 (Q4), International Speedway beat expectations on both revenues and earnings per share.
Compared to the prior-year quarter, revenue increased slightly and earnings per share increased significantly.
Margins improved across the board.
International Speedway tallied revenue of $191.9 million. The two analysts polled by S&P Capital IQ predicted revenue of $188.1 million. Sales were 0.5% higher than the prior-year quarter's $191.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.62. The four earnings estimates compiled by S&P Capital IQ forecast $0.59 per share on the same basis. GAAP EPS of $0.56 for Q4 were 81% higher than the prior-year quarter's $0.31 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 50.7%, 260 basis points better than the prior-year quarter. Operating margin was 26.5%, 170 basis points better than the prior-year quarter. Net margin was 13.8%, 580 basis points better than the prior-year quarter.
On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $635.9 million. The average EPS estimate is $1.69.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 126 members out of 145 rating the stock outperform, and 19 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give International Speedway a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on International Speedway is outperform, with an average price target of $29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of International Speedway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.