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MSG Sports (MSGS) Q2 Earnings & Revenues Beat, Down Y/Y
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Madison Square Garden Sports Corp. (MSGS - Free Report) or MSG Sports reported solid results for second-quarter fiscal 2024 (ended Dec 31, 2023), with earnings and revenues beating the Zacks Consensus Estimate.
Yet, on a year-over-year basis, both earnings and revenues declined.
The company’s results in the quarter were driven by Knicks and Rangers playing six and three fewer regular season home games, respectively, during the fiscal quarter compared with the prior year period. This resulted in decreased pre/regular season ticket-related revenues, suite revenues, and sponsorship and signage revenues on a year-over-year basis.
Nonetheless, these negative aspects were partially offset by higher local media rights fees and revenues from league distributions. Also, higher average per-game revenues and net sales of suite products were encouraging.
Following the earnings announcement, shares of MSGS gained 6% during the trading session on Feb 6.
Earnings & Revenue Discussion
MSG Sports reported quarterly earnings of 59 cents per share, which topped the Zacks Consensus Estimate of 37 cents by 59.5%. However, the reported figure declined 29.8% from the year-ago quarter’s earnings of 84 cents per share.
The Madison Square Garden Company Price, Consensus and EPS Surprise
Revenues for the quarter amounted to $326.9 million beating the consensus mark of $323.1 million by 1.2%. Yet, the reported figure declined 8% year over year.
Operating Highlights
In the fiscal second quarter, adjusted operating income was $37 million, down 43% from $64.4 million reported in the year-ago quarter. Adjusted operating margin contracted 690 basis points to 11.3% year over year.
Direct operating expenses increased 3% to $232.2 million compared with the year-ago quarter. The increase was driven by higher team personnel compensation and higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs). On the other hand, selling, general and administrative expenses were $65.1 million, down 14% on a year-over-year basis. The decline was on the back of lower employee compensation and related benefits along with reduced other general and administrative expenses.
Balance Sheet
As of Dec 31, 2023, MSG Sports had cash, cash equivalents and restricted cash of $41.2 million, up from $40.5 million as of fiscal 2023 end. As of the second quarter of fiscal 2024 end, the company had long-term debt of $330 million, up from $295 million in fiscal 2023 end.
In the first six months of fiscal 2024, net cash used in operating activities was $20.3 million, against net cash provided by operating activities of $31.6 million reported in the year-ago comparable period.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
The quarterly results reflect unprecedented demand for the brands from new and loyal guests. The company reported record bookings, both in terms of rate and volume. Going forward, the management emphasized delivering long-term shareholder value through industry-leading global brands, innovative fleets and diverse destinations. The company anticipates achieving two Trifecta goals ahead of schedule.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for second-quarter fiscal 2024. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year.
The company’s quarterly results reflect solid enrollment growth along with the efficient execution of its Growth with Purpose strategy. The continuous focus on this growth strategy has sparked organic revenue growth, improved operational efficiencies and yielded outstanding academic outcomes. Owing to the quarter’s uptrend, ATGE has raised its fiscal 2024 guidance.
Las Vegas Sands Corp. (LVS - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
The company reported continued improvement in the operating environment in Macao and Singapore. In Macao, the company reported a sustained recovery across each of its segments. Singapore’s Marina Bay Sands demonstrated solid financial and operational performance. The introduction of new suite options and improved services is in line with the improving airlift capacity and the continuous recovery in travel and tourism spending, especially from China and the broader region.
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MSG Sports (MSGS) Q2 Earnings & Revenues Beat, Down Y/Y
Madison Square Garden Sports Corp. (MSGS - Free Report) or MSG Sports reported solid results for second-quarter fiscal 2024 (ended Dec 31, 2023), with earnings and revenues beating the Zacks Consensus Estimate.
Yet, on a year-over-year basis, both earnings and revenues declined.
The company’s results in the quarter were driven by Knicks and Rangers playing six and three fewer regular season home games, respectively, during the fiscal quarter compared with the prior year period. This resulted in decreased pre/regular season ticket-related revenues, suite revenues, and sponsorship and signage revenues on a year-over-year basis.
Nonetheless, these negative aspects were partially offset by higher local media rights fees and revenues from league distributions. Also, higher average per-game revenues and net sales of suite products were encouraging.
Following the earnings announcement, shares of MSGS gained 6% during the trading session on Feb 6.
Earnings & Revenue Discussion
MSG Sports reported quarterly earnings of 59 cents per share, which topped the Zacks Consensus Estimate of 37 cents by 59.5%. However, the reported figure declined 29.8% from the year-ago quarter’s earnings of 84 cents per share.
The Madison Square Garden Company Price, Consensus and EPS Surprise
The Madison Square Garden Company price-consensus-eps-surprise-chart | The Madison Square Garden Company Quote
Revenues for the quarter amounted to $326.9 million beating the consensus mark of $323.1 million by 1.2%. Yet, the reported figure declined 8% year over year.
Operating Highlights
In the fiscal second quarter, adjusted operating income was $37 million, down 43% from $64.4 million reported in the year-ago quarter. Adjusted operating margin contracted 690 basis points to 11.3% year over year.
Direct operating expenses increased 3% to $232.2 million compared with the year-ago quarter. The increase was driven by higher team personnel compensation and higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs). On the other hand, selling, general and administrative expenses were $65.1 million, down 14% on a year-over-year basis. The decline was on the back of lower employee compensation and related benefits along with reduced other general and administrative expenses.
Balance Sheet
As of Dec 31, 2023, MSG Sports had cash, cash equivalents and restricted cash of $41.2 million, up from $40.5 million as of fiscal 2023 end. As of the second quarter of fiscal 2024 end, the company had long-term debt of $330 million, up from $295 million in fiscal 2023 end.
In the first six months of fiscal 2024, net cash used in operating activities was $20.3 million, against net cash provided by operating activities of $31.6 million reported in the year-ago comparable period.
Zacks Rank & Recent Consumer Discretionary Releases
MSG Sports currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. However, the top and the bottom line increased on a year-over-year basis.
The quarterly results reflect unprecedented demand for the brands from new and loyal guests. The company reported record bookings, both in terms of rate and volume. Going forward, the management emphasized delivering long-term shareholder value through industry-leading global brands, innovative fleets and diverse destinations. The company anticipates achieving two Trifecta goals ahead of schedule.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for second-quarter fiscal 2024. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year.
The company’s quarterly results reflect solid enrollment growth along with the efficient execution of its Growth with Purpose strategy. The continuous focus on this growth strategy has sparked organic revenue growth, improved operational efficiencies and yielded outstanding academic outcomes. Owing to the quarter’s uptrend, ATGE has raised its fiscal 2024 guidance.
Las Vegas Sands Corp. (LVS - Free Report) reported mixed fourth-quarter 2023 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
The company reported continued improvement in the operating environment in Macao and Singapore. In Macao, the company reported a sustained recovery across each of its segments. Singapore’s Marina Bay Sands demonstrated solid financial and operational performance. The introduction of new suite options and improved services is in line with the improving airlift capacity and the continuous recovery in travel and tourism spending, especially from China and the broader region.