Madison Square Garden Entertainment beats Q4 revenue estimates despite 17% decline

Overview

• Madison Square Garden Entertainment Q4 revenue of $154.1 mln beats analysts' expectations, despite 17% decline

• Adjusted EBIT for Q4 beats estimates, net income misses expectations

• Company repurchased approximately $40 mln of Class A common stock in fiscal 2025

Outlook

• MSG Entertainment anticipates solid revenue growth in fiscal 2026

• Company expects adjusted operating income growth in fiscal 2026

• Sees continued strong demand for entertainment assets

Result Drivers

• EVENT-RELATED REVENUES - Decrease due to fewer concerts at Madison Square Garden Arena and shift from promoted events to rentals

• SPORTING EVENTS - Increase in revenues from other live entertainment and sporting events at company venues

• FOOD AND BEVERAGE - Decline in revenues due to fewer Knicks and Rangers games and concerts at Madison Square Garden Arena

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy"

• Wall Street's median 12-month price target for Madison Square Garden Entertainment Corp is $46.00, about 12.6% above its August 12 closing price of $40.22

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw7WYLlha