Despite better than expected first quarter earnings, investors are worried about a decrease in advance ticket sales. This decrease may signal less consumer spending by the average NASCAR fan. However, the stock has seen significant fluctuation because investors not worried about the ticket sales still see benefits in the having 75% of the company's revenues generated by long-term TV and corporate sponsorship contracts International Speedway Lacks Horsepower, Motley Fool, 4/11/08
International Speedway Corp reported net income of $9.5 million (18 cents a share) in the third quarter compared to $34.3 million (64 cents a share) last year. The company also lowered its outlook for the year 2007 from $2.80-2.90 a share to $2.70-2.75 a share.
The company announced an earnings forecast for the year that was below expectations, due to expected losses from its joint venture with Speedway Motorsports.
The decline is a result of Dale Earnhardt Jr.'s decision to leave the Dale Earnhardt Inc. team at the end of 2007 -- Speedway motorspors had a licensing agreement with him.