The 10-second takeaway
For the quarter ended Feb. 29 (Q1), International Speedway missed estimates on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margin increased, operating margin shrank, and net margin dropped.
International Speedway logged revenue of $127.4 million. The two analysts polled by S&P Capital IQ anticipated revenue of $140.9 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $148.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The two earnings estimates compiled by S&P Capital IQ predicted $0.34 per share. GAAP EPS of $0.37 for Q1 were 18% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.9%, 70 basis points better than the prior-year quarter. Operating margin was 23.4%, 500 basis points worse than the prior-year quarter. Net margin was 13.5%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $158.7 million. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $621.9 million. The average EPS estimate is $1.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 122 members out of 142 rating the stock outperform, and 20 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give International Speedway a green thumbs-up, and seven 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 $31.50.
Over the decades, small-cap stocks like International Speedway have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add International Speedway to My Watchlist.
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.