Madison Square Garden Entertainment (NYSE:MSGE) Announces Earnings Results

by · The Cerbat Gem

Madison Square Garden Entertainment (NYSE:MSGE – Get Free Report) released its quarterly earnings results on Tuesday. The company reported $1.94 EPS for the quarter, missing analysts’ consensus estimates of $2.35 by ($0.41), FiscalAI reports. The business had revenue of $459.94 million for the quarter, compared to the consensus estimate of $448.21 million. Madison Square Garden Entertainment had a negative return on equity of 270.62% and a net margin of 5.12%.The firm’s revenue was up 12.9% on a year-over-year basis. During the same quarter last year, the company earned $1.56 earnings per share.

Here are the key takeaways from Madison Square Garden Entertainment’s conference call:

  • Reported strong fiscal Q2 results with revenues of $459.9 million (up 13% YoY) and adjusted operating income of $190.4 million (up 16%), driven largely by the holiday season.
  • The Christmas Spectacular had its best season in 25 years—215 paid performances, >1.2 million tickets sold, ~$195 million in total revenue, mid-single-digit per-show revenue growth, and management sees room to add shows and raise yields.
  • Concert bookings are pacing strongly—The Garden has exceeded its concert bookings goal and the company announced a 30-night Harry Styles residency (rental) plus other multi-night runs, which should materially support fiscal 2027 concert growth.
  • Marketing partnerships and premium hospitality are improving after bringing sponsorship sales in-house, highlighted by multiyear renewals (Anheuser-Busch), the Infosys naming-rights agreement for the theater, and continued suite sales momentum.
  • SG&A was elevated due to nonrecurring items and higher labor—including a $4M executive transition charge, a $2M prior-period true-up, and an expected ~$8M severance from a voluntary exit program—though management expects SG&A to start normalizing by the June quarter.

Madison Square Garden Entertainment Trading Down 1.7%

NYSE:MSGE traded down $1.05 during trading hours on Thursday, hitting $58.77. The stock had a trading volume of 20,066 shares, compared to its average volume of 335,213. Madison Square Garden Entertainment has a 1-year low of $28.29 and a 1-year high of $63.10. The company has a market cap of $2.37 billion, a PE ratio of 54.46 and a beta of 0.39. The business has a 50 day simple moving average of $55.49 and a two-hundred day simple moving average of $47.30.

Institutional Trading of Madison Square Garden Entertainment

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MSGE. Two Sigma Investments LP acquired a new stake in Madison Square Garden Entertainment in the third quarter worth about $250,000. Sei Investments Co. lifted its holdings in Madison Square Garden Entertainment by 6.2% during the 3rd quarter. Sei Investments Co. now owns 7,731 shares of the company’s stock valued at $350,000 after purchasing an additional 451 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Madison Square Garden Entertainment in the second quarter valued at $294,000. Tower Research Capital LLC TRC raised its position in shares of Madison Square Garden Entertainment by 84.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,512 shares of the company’s stock valued at $380,000 after buying an additional 4,363 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new stake in shares of Madison Square Garden Entertainment during the second quarter valued at approximately $382,000. Institutional investors own 96.86% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the company. JPMorgan Chase & Co. boosted their target price on Madison Square Garden Entertainment from $60.00 to $63.00 and gave the company a “neutral” rating in a research note on Wednesday. Susquehanna increased their target price on Madison Square Garden Entertainment from $51.00 to $61.00 and gave the stock a “positive” rating in a research note on Thursday, December 11th. Wolfe Research downgraded shares of Madison Square Garden Entertainment from an “outperform” rating to a “peer perform” rating in a report on Monday, December 15th. Weiss Ratings restated a “hold (c)” rating on shares of Madison Square Garden Entertainment in a report on Monday, December 29th. Finally, The Goldman Sachs Group reissued a “conviction-buy” rating on shares of Madison Square Garden Entertainment in a report on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $55.00.

View Our Latest Stock Analysis on Madison Square Garden Entertainment

About Madison Square Garden Entertainment

(Get Free Report)

Madison Square Garden Entertainment Corp. (NYSE: MSGE) is a premier live entertainment company focused on producing and hosting a wide range of events across North America. Established as a separate publicly traded entity in April 2020 through a spin-off from Madison Square Garden Company, MSGE owns and operates iconic venues such as Madison Square Garden in New York City, Radio City Music Hall, The Chicago Theatre and Sphere in Las Vegas. These facilities serve as flagship stages for concerts, sports events, family shows and cultural performances.

The company’s core business activities center on venue management, event promotion and production services.

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