Morningstar

Modest Improvement in Demand at International Speedway

Meaningful pricing gains in the future will remain difficult to capture relative to the past, given the price sensitivity of the average consumer.

Our thesis on narrow-moat

The company reiterated its 2017 outlook, which called for revenue of $660 million-$670 million and EPS of $1.50-$1.65, both in line with our prior forecast for $670 million in sales and $1.63 in EPS. Furthermore, we have little deleveraging baked into our expense profile, with our expected general and administrative ratio declining by just 10 basis points and motorsports-related expenses ticking down another 10 basis points, but with EBIT margins falling 20 basis points year over year to 16.3%, as depreciation rises and more than offsets other expense gains.

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About the Author

Jaime M. Katz, CFA

Senior Equity Analyst
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Jaime M. Katz, CFA, is a senior equity analyst for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. She covers home improvement retailers and travel and leisure.

Before joining Morningstar in 2011, Katz was an associate for Credit Agricole Corporate and Investment Bank. She also worked in equity research for William Blair for three years and spent three years in asset management at Mesirow Financial.

Katz holds a bachelor’s degree in economics from the University of Wisconsin and a master’s degree in business administration from the University of Chicago Booth School of Business. She also holds the Chartered Financial Analyst® designation. She ranked first in the leisure goods and services industry in The Wall Street Journal’s annual “Best on the Street” analysts survey in 2013, the last year the survey was conducted.

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