Madison Square Garden (NYSE:MSGS) Announces Earnings Results, Misses Estimates By $0.32 EPS

Madison Square Garden (NYSE:MSGS) announced its quarterly earnings data on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.66 by ($0.32), Briefing.com reports. The business had revenue of $403.42 million for the quarter, compared to the consensus estimate of $394.58 million. During the same quarter in the prior year, the company earned $0.05 earnings per share. The business’s revenue for the quarter was up 12.7% compared to the same quarter last year.

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

• MSG Sports reported Q2 revenue of $403.4 million and Adjusted Operating Income of $29.7 million, driven by higher per‑game revenue across ticketing, suites, sponsorship and food/beverage/merchandise.
• Strong fan engagement — a combined Knicks and Rangers season ticket renewal rate of ~94% — plus centennial merchandise and partnerships (e.g., Game 7, KISS) produced record single‑game merch sales and higher per‑cap spending.
• Refinancings extended senior secured revolver maturities to November 2030, lowered borrowing costs and increased the Knicks revolver capacity by $150 million to $425 million, enhancing liquidity and financial flexibility.
• Amended local media rights with MSG Networks reduced annual rights fees by 28% for the Knicks and 18% for the Rangers, contributing to a 4% year‑over‑year decline in national and local media rights fees.
• AOI growth was partially offset by higher team personnel costs (including luxury tax) and revenue‑sharing expenses, and Q2 benefited from two extra home games versus prior year — a timing benefit that will reverse in the second half.

Madison Square Garden Price Performance

MSGS traded down $15.29 during trading on Thursday, reaching $271.97. 300,048 shares of the stock were exchanged, compared to its average volume of 203,979. The company has a market capitalization of $6.53 billion, a price-to-earnings ratio of -277.52 and a beta of 0.61. Madison Square Garden has a 1 year low of $173.26 and a 1 year high of $298.97. The business’s 50 day moving average price is $258.47 and its two-hundred day moving average price is $228.26.

Institutional Investors Weigh In On Madison Square Garden

Several institutional investors and hedge funds have recently made changes to their positions in MSGS. Two Sigma Investments LP increased its holdings in Madison Square Garden by 0.4% during the 3rd quarter. Two Sigma Investments LP now owns 11,898 shares of the company’s stock valued at $2,701,000 after acquiring an additional 48 shares in the last quarter. Sei Investments Co. grew its position in shares of Madison Square Garden by 1.2% in the third quarter. Sei Investments Co. now owns 4,289 shares of the company’s stock valued at $974,000 after purchasing an additional 52 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Madison Square Garden by 2.4% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,251 shares of the company’s stock worth $965,000 after purchasing an additional 99 shares in the last quarter. Empowered Funds LLC raised its position in shares of Madison Square Garden by 10.8% during the 1st quarter. Empowered Funds LLC now owns 2,055 shares of the company’s stock worth $400,000 after purchasing an additional 200 shares during the last quarter. Finally, Captrust Financial Advisors raised its position in shares of Madison Square Garden by 15.4% during the 2nd quarter. Captrust Financial Advisors now owns 1,505 shares of the company’s stock worth $314,000 after purchasing an additional 201 shares during the last quarter. 68.94% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Wolfe Research cut shares of Madison Square Garden from an “outperform” rating to a “hold” rating in a report on Monday, December 15th. Weiss Ratings reissued a “sell (d+)” rating on shares of Madison Square Garden in a research note on Monday, December 29th. JPMorgan Chase & Co. raised their price target on Madison Square Garden from $230.00 to $240.00 and gave the company an “overweight” rating in a report on Monday, November 3rd. Citigroup upped their price objective on Madison Square Garden from $285.00 to $290.00 and gave the stock a “buy” rating in a report on Tuesday, December 16th. Finally, Zacks Research raised Madison Square Garden from a “strong sell” rating to a “hold” rating in a report on Monday, October 13th. Five equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $261.33.

About Madison Square Garden

Madison Square Garden Sports Corp (NYSE: MSGS) is a leading sports and entertainment holding company focused on professional sports franchises and related media assets. The company owns and operates teams such as the NBA’s New York Knicks, the NHL’s New York Rangers and the WNBA’s New York Liberty. Through these flagship franchises, MSG Sports offers a range of products and services including ticketing, premium seating and sponsorship opportunities, targeting fans in the New York metropolitan area and beyond.

In addition to team operations, Madison Square Garden Sports Corp holds a majority stake in MSG Networks, a regional cable network that broadcasts live sporting events, news and original programming.