Madison Square Garden (NYSE:MSGS) Announces Earnings Results

Madison Square Garden (NYSE:MSGS) announced its quarterly earnings data on Thursday. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.64 by $0.52, FiscalAI reports. The company had revenue of $278.75 million for the quarter, compared to the consensus estimate of $227.67 million. The company’s revenue was up 36.6% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.07) earnings per share.

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

• Knicks championship materially boosted results: Fiscal 2026 revenue reached approximately $1.15 billion and adjusted operating income was $58.7 million. Fourth-quarter revenue rose 37% year over year to $278.7 million, while playoff revenue increased to $182 million from $115.2 million.
• Management expects championship momentum to support fiscal 2027 growth across ticketing, sponsorships, suites, food and beverage, and merchandise. Season-ticket renewals are tracking above 90%, sponsorship revenue more than doubled during the postseason, and additional suite renovations are expected to add revenue.
• MSG Sports expects to publicly file an updated Form 10 registration statement for the proposed Rangers spin-off this week and currently targets completion by the end of October, subject to board approval and other conditions. Management says the separation would give each business greater strategic and financial flexibility, but it has not ruled out future minority stake sales.
• Fiscal 2027 expenses are expected to increase because of higher team compensation, NBA luxury-tax costs, and revenue-sharing expense, including the impact of the NHL’s new collective bargaining agreement. The company also estimates that pending tax-law changes could produce approximately $60 million of additional income-tax expense in fiscal 2028 before considering the spin-off.
• The company expects higher media-rights distributions, including increased MSG Sports participation in the NHL’s new Canadian agreement with Rogers. Local Knicks and Rangers rights remain contracted with MSG Networks through the 2029 seasons, with management expressing confidence in the value of locally tailored sports content.

Madison Square Garden Trading Up 1.3%

Shares of MSGS stock traded up $5.35 during trading hours on Thursday, reaching $419.47. 347,174 shares of the stock were exchanged, compared to its average volume of 241,487. The firm has a market capitalization of $10.10 billion, a price-to-earnings ratio of -451.07 and a beta of 0.62. Madison Square Garden has a 12-month low of $191.33 and a 12-month high of $438.93. The company’s 50-day moving average price is $388.85 and its 200-day moving average price is $346.26.

Hedge Funds Weigh In On Madison Square Garden

Hedge funds have recently bought and sold shares of the business. Aster Capital Management DIFC Ltd bought a new position in shares of Madison Square Garden in the fourth quarter worth about $26,000. Global Retirement Partners LLC boosted its position in Madison Square Garden by 1,150.0% in the 4th quarter. Global Retirement Partners LLC now owns 125 shares of the company’s stock valued at $32,000 after buying an additional 115 shares during the period. Tower Research Capital LLC TRC grew its stake in Madison Square Garden by 313.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 401 shares of the company’s stock worth $84,000 after acquiring an additional 304 shares in the last quarter. Smartleaf Asset Management LLC grew its stake in Madison Square Garden by 21.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 453 shares of the company’s stock worth $118,000 after acquiring an additional 80 shares in the last quarter. Finally, Ancora Advisors LLC increased its position in shares of Madison Square Garden by 195.2% during the third quarter. Ancora Advisors LLC now owns 620 shares of the company’s stock worth $141,000 after acquiring an additional 410 shares during the period. Institutional investors own 68.94% of the company’s stock.

Key Headlines Impacting Madison Square Garden

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

• Positive Sentiment: Q4 earnings and revenue beat expectations. MSGS reported quarterly EPS of $1.16, versus the analyst consensus of $0.64, while revenue reached $278.75 million, ahead of the $227.67 million estimate. Revenue increased 36.6% year over year, and the company moved from a $0.07-per-share loss to a profit. Zacks reported adjusted quarterly earnings of $1.19 per share versus its $0.72 consensus estimate. MarketBeat earnings report Zacks earnings report
• Positive Sentiment: Knicks championship boosts results. Coverage attributes the quarterly beat and share-price strength to the New York Knicks’ championship, which likely supported ticketing, sponsorship, media and merchandise revenue for MSG Sports. Seeking Alpha Knicks results article

Wall Street Analyst Weigh In

A number of research firms have commented on MSGS. Guggenheim raised their price target on Madison Square Garden from $470.00 to $522.00 and gave the company a “buy” rating in a report on Thursday, July 23rd. Wall Street Zen raised Madison Square Garden from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Morgan Stanley raised shares of Madison Square Garden from an “equal weight” rating to an “overweight” rating and set a $450.00 target price for the company in a report on Wednesday, July 15th. Susquehanna upped their price target on shares of Madison Square Garden from $429.00 to $430.00 and gave the company a “positive” rating in a research note on Tuesday, June 23rd. Finally, Seaport Research Partners increased their price objective on shares of Madison Square Garden from $430.00 to $435.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Four analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $442.40.

Madison Square Garden Company Profile

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.