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International Speedway Meets on the Top Line, Misses Where it Counts

By Seth Jayson - Updated Apr 10, 2017 at 1:55PM

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Just the facts, Fool.

International Speedway (Nasdaq: ISCA) reported earnings on April 4. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 28 (Q1), International Speedway met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share shrank. GAAP earnings per share contracted significantly.

Margins contracted across the board.

Revenue details
International Speedway logged revenue of $128.6 million. The two analysts polled by S&P Capital IQ foresaw a top line of $127.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.33. The four earnings estimates compiled by S&P Capital IQ forecast $0.36 per share. Non-GAAP EPS of $0.33 for Q1 were 11% lower than the prior-year quarter's $0.37 per share. GAAP EPS of $0.29 for Q1 were 22% lower than the prior-year quarter's $0.37 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 56.5%, 40 basis points worse than the prior-year quarter. Operating margin was 20.8%, 260 basis points worse than the prior-year quarter. Net margin was 10.5%, 300 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $182.4 million. On the bottom line, the average EPS estimate is $0.50.

Next year's average estimate for revenue is $620.4 million. The average EPS estimate is $1.46.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 145 members out of 164 rating the stock outperform, and 19 members rating it underperform. Among 64 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 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 $33.50.

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