International Speedway (ISCA 38.41, +1.26) trades higher by 3.4% after reporting better than expected results for the first quarter and reaffirming its guidance for the full year.
The racetrack owner and operator delivered above-consensus first quarter earnings of $0.47 per share on a 3.7% year-over-year increase in revenue to $147.90 million, which also exceeded market expectations.
The company's earnings beat was fueled by the hosting of Ferrari World Finals at Daytona International Speedway and a strong showing at this year's Speedweeks at Daytona. Corporate partnership and broadcast revenues reached a historic level and Daytona 500 was sold out for the second year in a row. Fan engagement was on the rise after the implementation of new pit road rules and stage racing.
International Speedway is in the process of finishing its ONE DAYTONA complex, which is expected to be completed at the end of this year. The complex will consist of 300,000 square feet of retail, dining, and entertainment space with two hotels and a residential apartment community.
In addition to the ONE DAYTONA project, International Speedway is in the process of redeveloping the Phoenix Raceway. Construction began this year and new components of the project are expected to debut at the end of the year. Completion is planned for fall 2018.
The company highlighted strong sponsor relationships, noting that more than one in four FORTUNE 500 companies participate in NASCAR advertising. This is higher than corporate participation in any other sports property. Since 2008, roughly 20.0% more FORTUNE 500 companies have invested in NASCAR.
For fiscal year 2017, International Speedway has agreements in place for 89.0% of its gross marketing partnership revenue target, down from 92.0% one year ago.
Looking ahead, the company expects that earnings for the fiscal year will be between $1.50 and $1.65 per share on revenue between $660 million and $670 million. The company's guidance encompasses current market expectations.