Speedway Motorsports Goes Red

Seth Jayson, The Motley Fool
Updated

Speedway Motorsports (NYS: TRK) reported earnings on March 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Speedway Motorsports beat expectations on revenue and met expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted to a loss.

Margins dropped across the board.

Revenue details
Speedway Motorsports chalked up revenue of $89.1 million. The one analyst polled by S&P Capital IQ predicted sales of $82.4 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $82.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.00. The one earnings estimate compiled by S&P Capital IQ predicted $0.00 per share on the same basis. GAAP EPS were -$0.01 for Q4 compared to $0.15 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 48.7%, 330 basis points worse than the prior-year quarter. Operating margin was 9.5%, 450 basis points worse than the prior-year quarter. Net margin was -0.4%, 770 basis points worse than the prior-year quarter.

Looking ahead
Next year's average estimate for revenue is $507.9 million. The average EPS estimate is $1.25.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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