The 10-second takeaway
For the quarter ended June 30 (Q2), Speedway Motorsports beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased.
Gross margins dropped, operating margins expanded, net margins improved.
Speedway Motorsports recorded revenue of $181.0 million. The one analyst polled by S&P Capital IQ predicted revenue of $157.8 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $153.1 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 $0.65. The one earnings estimate compiled by S&P Capital IQ anticipated $0.49 per share. GAAP EPS were $0.65 for Q2 compared to -$0.68 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.0%, 80 basis points worse than the prior-year quarter. Operating margin was 30.8%, 180 basis points better than the prior-year quarter. Net margin was 14.9%, 3,340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $176.6 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $503.8 million. The average EPS estimate is $1.05.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.