Sphere Entertainment (NYSE:SPHR) Announces Quarterly Earnings Results, Beats Estimates By $1.35 EPS

Sphere Entertainment (NYSE:SPHR) posted its earnings results on Thursday. The company reported $1.23 EPS for the quarter, topping analysts’ consensus estimates of ($0.12) by $1.35, FiscalAI reports. Sphere Entertainment had a negative return on equity of 8.87% and a net margin of 2.16%.The company had revenue of $394.28 million for the quarter, compared to the consensus estimate of $377.60 million. During the same period in the previous year, the business earned ($3.49) earnings per share. Sphere Entertainment’s quarterly revenue was up 27.9% compared to the same quarter last year.

Here are the key takeaways from Sphere Entertainment’s conference call:

• The company announced a second U.S. 6,000-seat Sphere at National Harbor, backed by ~ $200 million in state/local/private incentives and targeting opening in four years or less, with Abu Dhabi and multiple other market discussions underway.
• Strong Q4 results with total company revenue of $394.3 million and adjusted operating income of $128 million; Sphere segment revenue rose to $274.2 million (up >60% YoY) and AOI turned positive at $89.4 million.
• The Wizard of Oz continues to perform well—~2.2 million tickets sold and ~$290 million in ticket sales—with a planned Wizard of Oz 2.0 release and a new Sphere Experience (“From the Edge”) expected later this year, plus active IP discussions.
• MSG Networks showed pressure with revenues down to $120.1 million and AOI of $38.6 million, reflecting an ~14.5% subscriber decline, lower affiliate rates, and amended media-rights agreements.
• Balance-sheet and liquidity strengthened for Sphere: net debt of ~ $56 million offset by ~$477 million of unrestricted cash, refinancing of the Las Vegas facility with an improved rate and maturity extended to January 2031, and a new undrawn $275 million revolver for corporate purposes.

Sphere Entertainment Trading Down 0.1%

Shares of NYSE:SPHR traded down $0.10 during midday trading on Friday, reaching $115.62. The company’s stock had a trading volume of 1,416,994 shares, compared to its average volume of 713,545. The firm has a market cap of $4.08 billion, a price-to-earnings ratio of -256.93 and a beta of 1.68. The business has a 50 day moving average price of $94.31 and a 200 day moving average price of $71.95. Sphere Entertainment has a 1 year low of $23.89 and a 1 year high of $117.50. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.36.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. WINTON GROUP Ltd acquired a new position in Sphere Entertainment during the fourth quarter worth approximately $361,000. Moneta Group Investment Advisors LLC purchased a new stake in shares of Sphere Entertainment during the 4th quarter valued at $365,000. Creative Planning increased its holdings in shares of Sphere Entertainment by 23.6% during the 3rd quarter. Creative Planning now owns 6,234 shares of the company’s stock worth $387,000 after buying an additional 1,190 shares during the last quarter. Advisory Services Network LLC raised its position in shares of Sphere Entertainment by 5.9% in the 3rd quarter. Advisory Services Network LLC now owns 7,858 shares of the company’s stock worth $488,000 after buying an additional 440 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Sphere Entertainment by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,270 shares of the company’s stock worth $532,000 after buying an additional 831 shares during the period. Institutional investors and hedge funds own 92.03% of the company’s stock.

Key Stories Impacting Sphere Entertainment

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Q4 earnings beat and revenue upside — Sphere reported $1.23 EPS vs. a consensus loss and revenue of $394.3M (above estimates), driving the earlier rally as results showed a sharp improvement year‑over‑year. View Press Release
• Positive Sentiment: Strong show run boosting venue revenue outlook — Ongoing success of the “Wizard of Oz” residency continues to support near‑term box‑office strength and contributed to positive headline coverage and investor enthusiasm. Article Title
• Positive Sentiment: Analyst target lift — Guggenheim raised its price target to $150 and kept a Buy rating, implying material upside from current levels and reinforcing the bullish narrative among some sell‑side analysts. The Fly
• Positive Sentiment: Growth and expansion roadmap — Management outlined a 4‑year plan for a National Harbor Sphere venue and signaled global expansion ambitions backed by roughly $200M of incentives, which supports longer‑term revenue runway beyond the Las Vegas property. Article Title
• Neutral Sentiment: Management commentary and call transcript available — The Q4 earnings call transcript and the company press release provide more detail on margins, cadence of upcoming shows, and capex/timeline for new venues; useful for investors digging into execution risk vs. opportunity. Earnings Call Transcript
• Neutral Sentiment: Higher trading volume and momentum metrics — Volume picked up well above average and the stock sits near its 1‑year high, reflecting strong investor interest but also raising the potential for short‑term volatility as traders rotate. MarketBeat
• Negative Sentiment: Profitability and forward earnings remain a concern — Despite the quarterly beat, the company still shows a negative net margin and negative return on equity; sell‑side consensus expects materially negative EPS for the fiscal year, leaving valuation dependent on successful execution of new venues and continued strong shows. Earnings Details

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SPHR. Seaport Research Partners raised shares of Sphere Entertainment from a “hold” rating to a “strong-buy” rating in a report on Thursday, January 8th. Bank of America upped their target price on Sphere Entertainment from $48.00 to $95.00 and gave the company a “neutral” rating in a research note on Friday, December 19th. Guggenheim increased their target price on Sphere Entertainment from $136.00 to $150.00 and gave the company a “buy” rating in a report on Friday. National Bank Financial set a $136.00 price target on Sphere Entertainment in a report on Thursday, January 22nd. Finally, New Street Research set a $110.00 price objective on Sphere Entertainment in a research note on Thursday, January 15th. Eight analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $101.23.

About Sphere Entertainment

Sphere Entertainment Co (NYSE: SPHR) is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems.