Jarrett Joins NBC's NASCAR Coverage MTS Centre Upgrades In The Works Winter Storm Forces Postponements Fire, CSN Chicago Reach TV Rights Deal Richard Sherman To Endorse T-Mobile Xavier, Nike Reach Five-Year Deal ATP Media CEO Steve Plasto Dies Pro Bowl Gets Lowest Overnight Since '07 Classified Advertisements Ex-Prudential Center Exec Sues Lamoriello
SBD/July 31, 2013/FinancePrint All
Rain during NASCAR weekends in Sonoma and Charlotte combined with the weak economy triggered a decrease in ticket sales and a decline in Q2 revenue at Speedway Motorsports Inc. Revenue fell to $176.8M, a 2.3% decrease from the same period last year. Most of the decrease stemmed from diminishing ticket revenue, which fell to $34.2M in the second quarter of this year from $39M a year ago. For the first six months of the year, SMI revenue is down 1.8% to $261M. Ticket sales revenue for the first half of the year is down 9.1% to $55.9M and event-related revenue from sponsorship sales, concessions and other areas is down 4% to $77.3M. SMI President & COO Marcus Smith in a statement said that the company’s performance to date was in line with expectations. He added, “We believe attendance and other event-related revenues will eventually improve as the economy recovers. In the meantime, SMI is intensifying efforts to provide our fans and customers with unmatched race entertainment and to win over the next generation of race fans, particularly targeting families, kids and first-time fans.”
If you "simply evaluated" Nike and Under Armour based on the recent quarterly results and future growth opportunity, the conclusion of which is currently a better stock buy "is a very easy answer: It's Under Armour," according to CNBC's Jim Cramer. UA reported "incredible results" as gross margin "increased by 250 basis points from the year before and a huge raise for your guidance." While Nike last month "delivered better than expected numbers, the upside surprises were modest" compared to UA's results. UA's "venture into footwear -- Nike's home turf -- has been extremely successful" and the company's new football cleat "has been the No. 1 seller in its category." Meanwhile, Nike has "always been driven by innovation," but the company recently said that it needed "to 'accelerate our innovation agenda.'" Cramer said, "Translation: These guys realize the competitors, like Under Armour, are upping the ante on innovation right now. Nike needs to double-down in order to maintain their fantastic global position." Cramer added, "If you're an older investor and you don't want to worry about the risk of a big miss, I would still recommend buying Nike over Under Armour even after Under Armour's stellar quarter. But if you're a younger investor with all the time in the world to make back any losses if Under Armour momentarily stumbles, then UA is the stock for you. ... Both companies represent the best kinds of stocks we have in this market" ("Mad Money," CNBC, 7/30).