It remains very quiet from the corporate front in the week of the 4th of July. On Thursday, July 5, just two large US corporations opened their books. Xyratex Ltd. (XRTX) and International Speedway Corporation (ISCA) reported their second quarter results. The following is a brief review of the most important facts pertaining to their reports.
Xyratex, the provider of data storage solutions, announced its second quarter results today after the market close. The company reported a 4.9% decrease in second quarter revenues to $322.1 million. It managed to report a GAAP-profit of $7.0 million, or $0.24 per diluted share, compared to a loss of $0.06 last year. CEO Barber commented on the results saying that net income and revenues came in line with expectations. Furthermore, "over the next 18 months, we have a number of new opportunities that I believe will be positive for the company".
For the third quarter of 2012, the company expects revenues to come in between the wide range of $313 million and $373 million. Diluted earnings per share on a GAAP-basis are expected to come in between $0.31 and $0.69. Investors are pleased with the results, which largely came in line with expectations and the strong guidance for the current quarter. Shares rose about 8% in after-hours trading to $12.60 per share, thereby narrowing its year to date losses to around 5%. Shares in Xyratex have fallen about a third from their highs around $18 in March amidst worries about an economic slowdown and the impact on technology spending.
International Speedway Corporation, the owner of motorsport entertainment facilities, reported its second quarter results on Thursday before the markets opened. The company reported $179.6 million in revenues, up 29% on the year. Operating income rose from $24.1 million to $33.2 million. The strong results were favorably impacted by the fact that the NASCAR Sprint Cup and the Camping World Truck that last year were held in the third quarter of the year where now held in the second quarter. GAAP net income rose to $13.7 million or $0.30 per share, compared to $0.25 last year.
For the full year of 2012, the company expects revenues to come in between $610 million and $630 million, on which the company expects to generate GAAP earnings per share of $1.50-$1.60. Investors reacted very positively in the early trading session on the back of the strong headline figures. Shares opened with gains of 8% around the $28 mark. By the close of the trading sessions, shares have fallen to $26.89, still up 2.4% on the day. Despite the intra-day pullback, as investors took notice that most growth was driven by a shift in event dates, shares trade near the upper side of their $24-$28 trading range.