Ask Matt: Why is International Speedway stalling?

Q: Why is International Speedway (ISCA) stalling?

A: It’s been anything but off to the races for International Speedway.

International Speedway is a Daytona Beach, Fla.-based operator of motorsports properties in the U.S., including everything from stockcar to truck-racing events. Shares ran into trouble Tuesday, falling $1.98, or nearly 6%, to $32.24 each after the company reported an adjusted profit in the May quarter of 29 cents a share, missing expectations by 9%, says S&P Global Market Intelligence. The company’s adjusted profit fell 17% from the same period a year ago even though revenue was up 2%.

Shares of the company haven’t gone anywhere this year and are down 7% over the past 12 months. Analysts are hopeful the company can reinvigorate growth. Adjusted profit is expected to rise 7% to $1.55 a share this fiscal year and 10% in fiscal 2017. Given that the stock hasn’t gone anywhere has made it attractive relative to price targets. Analysts think the stock will be worth $38.67 a share in 18 months, and if correct, that would be nearly 20% potential upside. But the company needs to prove itself as shares are trading for 24 times trailing earnings, which is above the market’s roughly 20-times multiple.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.