By David Gibbs
Earnings: Q2 profits of $0.22 vs. estimates of $0.29 and $0.35 for Q2 last year.
Revenue: Down 6.7% to $142.2 million vs. estimates of $145 million.
It is becoming increasingly clear that there will not be any meaningful macroeconomic recovery, particularly in unemployment and consumer confidence levels, for the balance of the year.
--Chief Executive Lesa France Kennedy.
Comment: International Speedway Corp. (NASDAQ: ISCA), the operator of 13 racetracks across the country including Daytona International Speedway and Talladega Superspeedway, missed its Q2 numbers due to economic headwinds that were compounded by unfavorable weather. Operating margins fell to 15% from 20.8% as costs were flat despite declining revenue. Extended negative visibility forced ISCA to pull in guidance as well. The company cut FY10 EPS forecasts to $1.50 from $1.60 and rev to $650 million from $660 million.
After tearing to the upside to the tune of a 25% gain between 4/8 and 4/27, shares of ISCA have used the months since then to give all the gains back. ISCA hit new multi-month lows on Thursday following its earnings release, but rallied and closed nearly unchanged. High volume in such trade indicates a potential pivot day. Shares rose 2.3% Friday, but one cannot underestimate the impact that the rally in the broad market had on the stock. ISCA has clearly demonstrated weakness as of late, but could be a good pickup for the bottom-pickers out there, should you be expecting last weeks short rally to become a more extended one.
Disclosure: No holdings in ISCA.