International Speedway (NASDAQ: ISCA), the parent company of motorsports entertainment events including NASCAR, saw its shares trade lower by more than 5 percent on Thursday after the company reported its third quarter results.
The stock’s five percent decline on Thursday essentially erases all of its gains since the start of 2016 and over the past year.
International Speedway said that it earned $0.03 per share in the third quarter on revenue of $128.99 million. Wall Street analysts were expecting the company to earn $0.00 per share on revenue of $131.13 million. Net income for the quarter rose to $2.2 million compared to a net loss of $4.0 million in the same quarter a year ago. However, the company did receive a favorable settlement relating to certain ancillary operations of around $1.1 million in the quarter which helped boost its profit.
Investors and traders were disappointed when the company provided an update to its outlook. International Speedway said that it is “most comfortable” guiding towards the lower end of the following for the full fiscal year: 1) revenue to be in a range of $658 million to $665 million, 2) EBITDA margin to be in a range of 32.1 percent to 32.6 percent, 3) diluted earnings per share of $1.45 to $1.55, and 4) EBITDA to be in a range of $211 million to $217 million.
“We are pleased with our third quarter results, which exceeded expectations,” stated Lesa France Kennedy, ISC Chief Executive Officer. “Revenues for the quarter increased as a result of contracted broadcast rights and strong corporate partnerships. We realized increased admissions for comparable events during the quarter driven by the Coke Zero 400 and a second consecutive sell-out of reserved grandstands for the NASCAR event at Watkins Glen. We also hosted two successful music festivals at Auto Club Speedway and Michigan, entertaining guests to a star-studded line-up over multiple days.”
“With three races complete, the 2016 Chase for the NASCAR Sprint Cup Championship is surging into the next round with great story lines and exciting competition. For the first time this elimination format is expanded to the Xfinity and Camping World Truck series, promising to deliver a thrilling showdown for all three series at the Ford Championship Weekend in Homestead-Miami Speedway.”