On Thursday, Aug. 6, Speedway Motorsports (NYSE: TRK) crossed its Q2 earnings finish line. The company reported a profit of 82 cents per share in the second three months of the year, well above consensus Wall Street estimates for a profit of 79 cents per share.

Now, you might think that TRK took the trading day's checkered flag with a win after its strong earnings beat, but that wasn't the case. Despite a solid move higher in the shares in the first hour of Thursday trade, TRK shares finished the session down more than 5%.

In auto racing, drivers try to hit their apexes, meaning they try to drive their cars with such precision that they can hit the exact spot -- within inches -- on the racetrack each lap.

By consistently hitting their apexes, drivers are able to achieve their fastest possible lap times, and being able to turn the fastest lap times puts the driver in the best position to win.

Today, the premier racing company in the country, International Speedway Corp. (NASDAQ: ISCA), hit its Q2 earnings apex.

On the surface, the news didn't look good. The company posted a $31.7 million loss for the second quarter. But it was not just falling revenue that affected International Speedway, which is to be expected from an entertainment company in a soft economy.

A new earnings reporting season kicks off this coming week with the quarterly report from Alcoa, the first Dow Jones industrial to report. But investors looking for early signs about the first quarter will be disappointed in what they see from the aluminum producer, assuming that analysts surveyed by Thomson Reuters are neither too optimistic or too pessimistic about those results.

International Speedway (NASDAQ: ISCA), a promoter of motor sports entertainment, closed at $25.23 Tuesday. ISCA December option implied volatility of 58 is above its 26-week average of 34 according to Track Data, suggesting larger price movement.

PetsMart (NYSE: PETM), the operator of more than 1,075 pet stores, is scheduled to report Q3 EPS today. PETM closed at $15.06 Tuesday. PETM November 15 straddle is priced at $1.65, PETM December 15 straddle is priced at $3.40. PETM December option implied volatility is at 97: January is at 75; above its 26-week average of 56 according to Track Data, indicating larger near term movement.

First Solar (NYSE-FSLR) is recently down $6.56 to $104 in pre-open trading. Friedman Billings says: "Recent checks suggest that FSLR's new strategy in the U.S. market (entering the distributed, rooftop segment) is already facing headwinds." FSLR overall option implied volatility of 121 is above its 26-week average of 82 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Alcoa Inc. (NYSE: AA) kicks off the new earnings seasons when it reports third quarter results on Tuesday. The Pittsburgh-based aluminum producer, which celebrated its 120th anniversary with the launch of its website, is expected to post a profit of 54 cents per share, down 15.6% from the same quarter of last year, on revenue of $7.2 billion, down 2.1%. While Alcoa has tended to fall short of estimates in recent quarters, in the second quarter it did offer a positive surprise of almost 3%. Its long-term earnings per share growth forecast is 14.8%, a little less than the S&P 500, and analysts polled by Thomson Financial on average recommend buying Alcoa, and have for more than 90 days. Shares reached a new 52-week low last week, and are down 48.9% from a year ago.

General Electric Co. (NYSE: GE) is also expected to report a slip in earnings this week. Analysts anticipate that the conglomerate will post a third-quarter profit of 45 cents per share, down just 6.3% from a year ago, on revenue of $47.7 billion, which is up 12.1%. GE has tended to eke out small positive surprises in recent quarters, by less than 1% in the second quarter. GE's long-term earnings per share growth forecast is only 11.0%, which is less than the sector average and the S&P 500. The consensus recommendation has recently swung to hold GE, but Warren Buffett has bought in to the tune of $3 billion. GE also reached a new 52-week low last week as the markets tumbled. GE shares are down 48.1% from a year ago.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcoa Inc. (NYSE: AA) Q2 earnings decline on materials costs but beat analysts estimates (see transcript).
• Apollo Group Inc. (NASDAQ: APOL) solid Q3 results were accompanied by a share buyback program.
• Boeing Co. (NYSE: BA) warned that Q2 results will include a delay-related charge of 22 cents per share.
• Cash America International Inc. (NYSE: CSH) predicted Q2 earnings above previous guidance.
• EZcorp Inc. (NASDAQ: EZPW) predicted better-than-expected Q3 results due to strong sales.
• Family Dollar Stores Inc. (NYSE: FDO) beat Q3 expectations and raised its Q4 guidance.
• Flow International Corp. (NASDAQ: FLOW) swung to a better-than-expected Q4 profit on strong demand.
• General Electric Co. (NYSE: GE) reported mixed Q2 results and offered an uninspiring Q3 outlook (transcript).
• Helen of Troy Ltd. (NASDAQ: HELE) Q1 results were colored by write-downs and other charges.
• International Speedway Corp. (NASDAQ: ISCA) Q2 earnings soared while revenue slipped.
• Levis Strauss Q2 profitability plunged due to declining sales and higher administrative costs.
• Marriott International Inc. (NYSE: MAR) topped Q2 estimates but lowered its guidance (see transcript).

As the new earnings season kicked off, Alcoa Inc. (NYSE: AA) posted better-than expected results, despite a decline in earnings, and Pepsi Bottling Group (NYSE: PBG) topped Wall Street expectations as well. This just goes to show that there is some good news in earnings if you know where to look. Here are a few recent, less-prominent examples.

Flow International Corp. (NASDAQ: FLOW), which makes industrial waterjet equipment, swung to a better-than-expected fiscal fourth-quarter profit of $13.3 million, or 35 cents per share, helped by a boost in sales due to strong demand and an income tax benefit. Revenue rose 21% to $63.3 million. Shares are creeping up from a 52-week low of $6.81 a week ago.

Motor sports company International Speedway Corp.'s (NASDAQ: ISCA) second-quarter profit rose 41% to $26 million, or 52 cents per share. However, revenue slipped 3% to $174.9 million as admission and food and merchandise sales declined. Results fell short of Wall Street expectations, and shares fell to a 52-week low of $36.36.

Apparel and footwear company Wolverine World Wide Inc. (NYSE: WWW), second-quarter profit of $16.8 million, or 33 cents per share, topped Wall Street expectations, as strong international results linked to the weaker dollar largely offset increased product and freight costs. Revenue climbed 7% to $267.4 million. But shares fell $3.11 to $23.46 in morning trading.

MOST NOTEWORTHY: Walgreen, Crown Castle and Brunswick were today's noteworthy initiations:

• Thomas Weisel started shares of Walgreen (NYSE: WAG) with an Overweight rating and $43 target. The firm is positive on WAG's steady cash flow and solid growth profile.
  
• Merriman believes Crown Castle (NYSE: CCI) is a core wireless holding given its high-margin, predictable recurring revenue model. They believe shares can trade to the $49-$51 range assuming management continues to execute on its free cash flow growth target. Shares were assumed with a Buy rating.
  
• KeyBanc initiated Brunswick (NYSE: BC) with a Hold rating and expects the recreational marine market to be challenging given weakening consumer spending trends.

OTHER INITIATIONS:

• Citigroup initiated Gerdau AmeriSteel (NYSE: GNA) with a Buy rating and $21 target.
  
• Piper assumed Teradyne (NYSE: TER) with a Neutral rating and $14 target.
  
• International Speedway (NASDAQ: ISCA) was initiated at Stephens with an Overweight rating and $50 target.

MOST NOTEWORTHY: Today's noteworthy upgrades included Lockheed Martin (LMT), Raytheon (RTN), Hartford Financial (HIG), Seagate Technology (STX) and CommScope (CTV):

• JP Morgan upgraded two defense stocks today: Lockheed Martin (NYSE: LMT) was upgraded to Neutral from Underweight on valuation;

• Raytheon (NYSE: RTN) was raised to Overweight from Neutral, with expectations for the company to post above average organic growth driven by strong bookings. The firm also raised Raytheon's 2008 EPS estimate to $3.80 from $3.60, well above the consensus estimate.

• AG Edwards believes Hartford Financial's (NYSE: HIG) recent weakness has created a buying opportunity and upgraded shares to Buy from Hold.

• Seagate (NYSE: STX) was upgraded to Buy from Hold at Brean Murray as checks indicate a healthy seasonal uptick in demand for drives and PCs in 2H07.

• CommScope (NYSE: CTV) was Upgraded to Outperform from Market Perform at Morgan Keegan based on higher 2007 and 2008 expectations along with accretion from the Andrew acquisition...

OTHER UPGRADES:

• BMC Software (NYSE: BMC) was upgraded to Neutral from Underperform at Credit Suisse.

• Friedman Billings raised Kimco Realty (NYSE: KIM) to Outperform from Market Perform.

• Merck (NYSE: MRK) was upgraded to Buy from Hold at AG Edwards.

• Int'l Speedway (NASDAQ: ISCA) was upgraded to Buy from Hold at Matrix USA.

• JP Morgan added Cognizant Technology Solutions (NASDAQ: CTSH) to its JP Morgan Focus List.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

MOST NOTEWORTHY: Campbell Soup Co (CPB), Yum! Brands (YUM), NYSE Euronext (NYX), Forest Laboratories (FRX) and International Speedway Corp (ISCA) were some of today's noteworthy upgrades:

• JP Morgan upgraded shares of Campbell Soup (NYSE: CPB) to Overweight from Neutral as they believe the company's entrance into Russia and China is not priced into shares. JP Morgan also added CPB to their Analyst Focus List.

• UBS upgraded shares of Yum! Brands (NYSE: YUM) to Buy from Neutral based on higher estimates for international, potential debt leverage, and a potential minority spin-off of its China business.

• Lehman upgraded NYSE Euronext (NYSE: NYX) to Overweight from Equal Weight on valuation following the recent weakness. They believe Q2 earnings and a potential S&P 500 Index addition could be a catalyst for gains.

• UBS upgraded Forest Labs (NYSE: FRX) to Buy from Neutral on valuation and their belief that the company will prevail in a patent dispute over Lexapro with Teva Pharmaceutical Industries Ltd (TEVA).

• AG Edwards upgraded International Speedway (NASDAQ: ISCA) to Hold from Sell on valuation...

OTHER UPGRADES:

• Hambrecht upgraded Micron Technology (NYSE: MU) to Buy from Hold.

• JMP Securities raised shares of Equifax (NYSE: EFX) to Outperform from Market Perform.

• Ferris Baker Watts upgraded Unica Corp (NASDAQ: UNCA) to Neutral from Sell.

• Calyon upgraded Discover Financial Services (NYSE: DFS) to Neutral from Sell.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Starting next year, the International Speedway Corp (NASDAQ: ISCA, ISCB) will end its 50-year relationship with Pepsi, a division of PepsiCo (NYSE: PEP), and launch a new, 10 year contract with its arch-rival, Coca-Cola (NYSE: KO).

The deal is estimated to earn Coke $50M a year over the next 10 years, with all of Coca-Cola's North American brands exclusively on sale in ISC's 10 racetracks. More importantly, Coca-Cola will gain thousands of hours of face time in front of millions of loyal sports fans. Coke will also take over the historic Pepsi 400 at Daytona, which had ties to Daytona's first event back in 1959.

The move to Coke comes as NASCAR was starting to gain popularity outside the boundaries of the Mason-Dixon line.

Coca-Cola isn't new to NASCAR. The soft-drink giant already has a contract with the six Speedway Motorsports (NYSE: TRK) tracks and continues to sponsor several drivers, including Tony Stewart, Denny Hamlin, Jeff Burton, Carl Edwards and Kevin Harvick. Taking the ISC contract from Pepsi now gives Coke majority control of non-alcoholic beverages at most of NASCAR's tracks.

Pepsi's not completely out of the race though. The soft-drink maker will still have an affiliation with NASCAR, maintaining a link to ISC through its parent company PepsiCo, whose Gatorade name will remain the title sponsor for victory lane at all ISC tracks. Pepsi will also continue to sponsor Hendrick Motorsports and driver Jeff Gordon.