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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