Sphere Entertainment (NYSE:SPHR) Posts Earnings Results, Beats Expectations By $1.35 EPS

Sphere Entertainment (NYSE:SPHR) released its quarterly earnings results on Thursday. The company reported $1.23 earnings per share for the quarter, topping the consensus estimate of ($0.12) by $1.35, FiscalAI reports. Sphere Entertainment had a negative return on equity of 17.20% and a negative net margin of 13.87%.The company had revenue of $394.28 million for the quarter, compared to analysts’ expectations of $377.60 million. During the same period in the previous year, the business posted ($3.49) earnings per share. The business’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 Up 21.9%

Shares of SPHR stock traded up $20.76 during trading hours on Thursday, hitting $115.56. 1,504,474 shares of the company were exchanged, compared to its average volume of 749,764. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.96 and a current ratio of 0.96. Sphere Entertainment has a fifty-two week low of $23.89 and a fifty-two week high of $117.06. The company has a 50 day simple moving average of $93.01 and a two-hundred day simple moving average of $71.14. The firm has a market cap of $4.08 billion, a P/E ratio of -22.32 and a beta of 1.68.

Analysts Set New Price Targets

A number of brokerages have recently commented on SPHR. The Goldman Sachs Group reiterated a “buy” rating and set a $98.00 price target on shares of Sphere Entertainment in a report on Tuesday, January 6th. New Street Research set a $110.00 price objective on Sphere Entertainment in a research report on Thursday, January 15th. Benchmark increased their target price on shares of Sphere Entertainment from $35.00 to $45.00 and gave the company a “sell” rating in a research report on Wednesday, November 5th. Wolfe Research restated an “outperform” rating and issued a $105.00 price target on shares of Sphere Entertainment in a research report on Monday, December 15th. Finally, National Bank Financial set a $136.00 price objective on shares of Sphere Entertainment in a research report on Thursday, January 22nd. Eight equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $94.38.

Institutional Investors Weigh In On Sphere Entertainment

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Moneta Group Investment Advisors LLC acquired a new position in shares of Sphere Entertainment during the fourth quarter worth approximately $365,000. WINTON GROUP Ltd bought a new stake in shares of Sphere Entertainment during the fourth quarter worth about $361,000. CIBC Bancorp USA Inc. acquired a new stake in shares of Sphere Entertainment in the 3rd quarter worth about $296,000. Jefferies Financial Group Inc. bought a new position in Sphere Entertainment in the 3rd quarter valued at about $257,000. Finally, Sherbrooke Park Advisers LLC acquired a new position in Sphere Entertainment during the 3rd quarter valued at about $251,000. 92.03% of the stock is owned by institutional investors.

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.