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

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

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

Shares of MSGS stock opened at $279.21 on Friday. The stock has a market capitalization of $6.71 billion, a PE ratio of -404.65 and a beta of 0.61. The business’s 50 day simple moving average is $260.47 and its 200 day simple moving average is $229.10. Madison Square Garden has a one year low of $173.26 and a one year high of $298.97.

Analyst Ratings Changes

Several equities analysts have commented on the company. Zacks Research upgraded Madison Square Garden from a “strong sell” rating to a “hold” rating in a research report on Monday, October 13th. JPMorgan Chase & Co. raised their price objective on shares of Madison Square Garden from $240.00 to $305.00 and gave the company an “overweight” rating in a report on Friday. Weiss Ratings reiterated a “sell (d+)” rating on shares of Madison Square Garden in a research report on Monday, December 29th. Wolfe Research cut shares of Madison Square Garden from an “outperform” rating to a “hold” rating in a research report on Monday, December 15th. Finally, Guggenheim reaffirmed a “buy” rating on shares of Madison Square Garden in a research note on Thursday. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $272.17.

Institutional Investors Weigh In On Madison Square Garden

Institutional investors have recently modified their holdings of the company. Tower Research Capital LLC TRC increased its holdings in Madison Square Garden by 477.8% in the third quarter. Tower Research Capital LLC TRC now owns 2,317 shares of the company’s stock worth $526,000 after purchasing an additional 1,916 shares in the last quarter. Captrust Financial Advisors grew 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 buying an additional 201 shares during the period. Salzhauer Michael bought a new stake in shares of Madison Square Garden in the 2nd quarter valued at $482,000. Worldquant Millennium Advisors LLC bought a new stake in shares of Madison Square Garden in the 2nd quarter valued at $516,000. Finally, Hsbc Holdings PLC acquired a new position in shares of Madison Square Garden during the 2nd quarter valued at $529,000. 68.94% of the stock is owned by institutional investors.

More Madison Square Garden News

Here are the key news stories impacting Madison Square Garden this week:

• Positive Sentiment: JPMorgan raised its price target on MSGS from $240 to $305 and assigned an “overweight” rating — signaling firm analyst conviction and potential upside from current levels (~9% uplift noted by the firm). This upgrade is a clear positive catalyst for buyer interest. JPMorgan Price Target Raise
• Positive Sentiment: Earnings call highlights and coverage emphasize strong revenue performance: revenue grew ~12.7% year-over-year to $403.4M and topped consensus — an encouraging sign for top-line momentum across MSGS’s sports and live-entertainment businesses. Positive commentary from management on revenue drove supportive market reaction. Q2 Call Highlights
• Neutral Sentiment: Full earnings call transcripts and analyst previews are now available for detail review — useful for parsing guidance, segment trends (MSG Sports vs. other businesses), and management comments but not new catalysts by themselves. Review the transcripts if you need detail on ticketing, media rights, or cost items. Earnings Call Transcript
• Negative Sentiment: EPS missed consensus materially: MSGS reported $0.34 EPS vs. $0.66 expected (despite revenue beat). The earnings shortfall is the primary near-term negative — it can pressure sentiment until analysts and investors see sustained margin recovery or clearer guidance. Earnings Miss Coverage

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.