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Madison Square Garden (MSG) to Post Q4 Earnings: What's Up?

Zacks Equity Research

The Madison Square Garden Company MSG is scheduled to report fourth-quarter fiscal 2019 results on Aug 20.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 7.3%. Also, it delivered positive earnings surprise in three of the trailing four quarters, the average beat being 20.56%.

Which Way Are Q4 Estimates Headed?

The Zacks Consensus Estimate for the bottom line is pegged at a loss of $2.34. In the year-ago quarter, the company had incurred a loss of $1.94 per share. Notably, the consensus mark for the quarter has been stable over the past 7 days. For quarterly revenues, The Zacks Consensus Estimate is pinned at nearly $275.7 million, suggesting a 13.3% decrease from the prior-year quarter reported figure.

Let’s delve deeper to find out how the company’s top and bottom lines will shape up in the upcoming quarterly release.

Factors at Play

Madison Square Garden’s top line in the quarter to be reported is likely to be hurt due to the dismal performance by both Sports and Entertainment business. The Zacks Consensus Estimate for the Entertainment segment’s revenues stands at $161 million, indicating a 13.4% decline from the prior-year quarter figure. Moreover, revenues from the Sports segment are likely to decline 12.9% to $115 million. Intense competition in the Sports business and the tricky nature of consumer discretionary spending are potential headwinds.

Madison Square has been bearing the brunt of high expenses for quite some time now. In the first nine months of fiscal 2019, Madison Square’s SG&A expenses increased 12.8% on a year-over-year basis. Also, direct operating expenses surged 11.7% from the year-ago level.

The Madison Square Garden Company Price and EPS Surprise

The Madison Square Garden Company Price and EPS Surprise

The Madison Square Garden Company price-eps-surprise | The Madison Square Garden Company Quote

What Does the Zacks Model Unveil?

Our proven model does not show that Madison Square Garden is likely to beat earnings fourth-quarter fiscal 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Madison Square Garden has an Earnings ESP of +14.53% and a Zacks Rank #5.

Peer Releases

Planet Fitness, Inc. PLNT reported second-quarter 2019 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings came in at 45 cents per share, which outpaced the consensus estimate of 41 cents.

Norwegian Cruise Line Holdings Ltd. NCLH has reported better-than-expected results for the second quarter of 2019. With this, the company’s earnings surpassed the Zacks Consensus Estimate for 10 consecutive quarters.

Royal Caribbean Cruises Ltd. RCL reported impressive second-quarter 2019 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $2.54 per share surpassed the Zacks Consensus Estimate of $2.45 and increased 11.9% year over year owing to higher revenues.

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The Madison Square Garden Company (MSG) : Free Stock Analysis Report
 
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
 
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
 
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
 
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