Earnings stock to watch: International Speedway Corp Class A (NASDAQ: ISCA)

International Speedway Corp Class A (NASDAQ: ISCA) stock fell over 0.8% on July 3^rd, 2019 (as of 11:30 am GMT-4; Source: Google finance) after the company in the first second of FY 19 has reported the non-GAAP net income of $15.9 million as compared to $16.4 million in the corresponding quarter last year. The company has posted the total revenues for the second quarter 2019 of approximately $168.1 million, compared to revenues of approximately $171.7 million for the same period in fiscal 2018. Operating income was approximately $15.5 million during the second quarter compared to approximately $17.3 million for the same period in fiscal 2018.

During the second quarter of fiscal 2019, in accordance with the contracts, the company had terminated the sponsorship agreements and related sublease agreements with one of the marketing partners that had filed for bankruptcy. Therefore the company had experienced lower admissions and sponsorship revenues related to the sponsorship agreements and lower rental expense related to the sublease agreements during the three months ended May 31, 2019 as compared to the same period in fiscal 2018. During the second quarter 2019, the received certain lease rents, and incurred operating expenses, related to ONE DAYTONA as a result of certain tenants commencing operations in the current period, for which there was no comparable activity in the same period of the prior year.

Meanwhile, in April, the company had opened the Marriott Autograph Collection hotel, The DAYTONA, to great success, and has commenced construction of the ICON Lifestyle Apartments, both part of the greater ONE DAYTONA project. Further, the company continues with the construction on the redevelopment of the iconic infield at Talladega Superspeedway. The components of the redevelopment opened for the spring NASCAR weekend and the full project is expected to be completed in the fourth quarter of fiscal 2019, in time for Talladega’s 50th anniversary. The redevelopment will immerse fans into the sport of NASCAR with a one-of-a-kind Talladega Garage Experience, featuring unprecedented access, interactive attractions and enhanced amenities for guests.

Additionally, in fiscal 2019, the company had increased the dividend approximately 4.3 percent to $0.49 per share. ISCA expect dividends to increase in 2020 and beyond, by approximately four to five percent annually. At May 31, 2019, the company had approximately $138.7 million remaining repurchase authority under the current $530 million Stock Purchase Plan.

For FY 19, the company expects the revenue to be in the range of $685 million to $705 million, operating margin is expected to be in the range of 13.5% to 16.0% and diluted earnings per share is expected to be in the range of $1.85 to $2.15