Madison Square Garden Entertainment Q2 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy MSGE?
Source: seekingalpha
- Earnings Highlights: Madison Square Garden Entertainment reported a Q2 GAAP EPS of $1.94, missing expectations by $0.32, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved revenue of $459.94 million, a 12.9% year-over-year increase, beating market expectations by $7.69 million, demonstrating strong performance in the entertainment sector and sustained customer demand.
- Adjusted Operating Income: Adjusted operating income reached $190.4 million, an increase of $26.4 million or 16% compared to the prior year, reflecting improvements in cost control and operational efficiency, thereby strengthening the foundation for future profitability.
- Future Outlook: The company plans to launch 215 Christmas Spectacular shows in fiscal 2026 while accelerating share buybacks, showcasing confidence in future performance and potentially attracting more investor interest in its long-term growth prospects.
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Analyst Views on MSGE
Wall Street analysts forecast MSGE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSGE is 59.17 USD with a low forecast of 47.00 USD and a high forecast of 64.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
4 Buy
3 Hold
0 Sell
Moderate Buy
Current: 59.350
Low
47.00
Averages
59.17
High
64.00
Current: 59.350
Low
47.00
Averages
59.17
High
64.00
About MSGE
Madison Square Garden Entertainment Corp. is a live entertainment company. The Company's portfolio includes a collection of venues - New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre - that showcase a range of sporting events, concerts, family shows, and special events. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes. In addition, the Company hosts two of the franchises in professional sports - the National Basketball Association’s Knicks and the National Hockey League’s Rangers. The Company also promotes, produces and/or presents a range of live sporting events, including professional boxing, college basketball, college hockey, professional bull riding, mixed martial arts, esports and wrestling. It conducts a significant portion of its operations at venues that it either owns or operates under long-term leases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Madison Square Garden Entertainment Reports Strong Q2 2026 Earnings Growth
- Significant Revenue Growth: Madison Square Garden Entertainment reported revenues of $460 million for Q2 2026, a 13% year-over-year increase, primarily driven by growth in entertainment offerings, arena license fees, and food and beverage sales, showcasing the company's success in diversifying its revenue streams.
- Operating Income Increase: Adjusted operating income reached $190.4 million, up 16% compared to the prior year, reflecting effective strategies in cost control and revenue growth despite higher SG&A expenses, thereby enhancing confidence in future profitability.
- Record Christmas Spectacular: The company achieved a record 215 paid performances and over 1.2 million tickets sold for the Christmas Spectacular, marking the highest attendance in 25 years, indicating sustained market appeal and brand value during the holiday season.
- Optimistic Future Outlook: Management expressed strong confidence in delivering robust revenue and adjusted operating income growth for fiscal 2026, supported by solid consumer demand and the upcoming 30-night Harry Styles residency, which is expected to further drive performance growth.
See More
Madison Square Garden Entertainment Q2 Earnings Report
- Earnings Highlights: Madison Square Garden Entertainment reported a Q2 GAAP EPS of $1.94, missing expectations by $0.32, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved revenue of $459.94 million, a 12.9% year-over-year increase, beating market expectations by $7.69 million, demonstrating strong performance in the entertainment sector and sustained customer demand.
- Adjusted Operating Income: Adjusted operating income reached $190.4 million, an increase of $26.4 million or 16% compared to the prior year, reflecting improvements in cost control and operational efficiency, thereby strengthening the foundation for future profitability.
- Future Outlook: The company plans to launch 215 Christmas Spectacular shows in fiscal 2026 while accelerating share buybacks, showcasing confidence in future performance and potentially attracting more investor interest in its long-term growth prospects.
See More
Madison Square Garden Entertainment Reports Strong Q2 Financial Results
- Significant Revenue Growth: In Q2 of fiscal 2026, Madison Square Garden Entertainment reported revenues of $459.9 million, a 13% increase year-over-year, driven by the record-setting Christmas Spectacular, which sold over 1.2 million tickets, marking a 9% rise from last year.
- Operating Income Increase: The company achieved an operating income of $163.8 million in Q2, up 18% from the previous year, reflecting revenue growth despite rising direct operating and administrative expenses, indicating effective cost management.
- Strong Entertainment Performance: Revenues from entertainment offerings reached $360.5 million, a 13% increase, primarily due to more Knicks and Rangers games and additional performances of the Christmas Spectacular, reinforcing the company's leadership in the live entertainment market.
- Optimistic Future Outlook: CEO James Dolan stated that the company is experiencing strong momentum in fiscal 2026 and is on track to drive robust growth in both revenue and adjusted operating income, reflecting confidence in future performance.
See More
Harry Styles' Global Tour Kicks Off in May with 30-Show Residency at Madison Square Garden
- Global Tour Launch: Harry Styles' 'Together, Together' world tour is set to kick off in May 2026, expected to attract a large fanbase and drive revenue growth for related companies like Madison Square Garden Entertainment.
- Residency Performance Schedule: Styles will perform 30 consecutive shows at Madison Square Garden from August to October, marking the most shows ever at the venue, which is anticipated to generate high demand for ticket sales.
- Album Release Support: This tour supports Styles' fourth solo album 'Kiss All The Time. Disco Occasionally', set to release on March 6, 2026, potentially enhancing the tour's appeal and box office performance.
- Market Potential Analysis: With ticket presales starting on January 30, Styles' tour has already become a trending topic on Google, indicating strong market demand, and is expected to bring significant economic benefits to Madison Square Garden and other related companies.
See More
Alibaba Plans IPO for AI Chip Unit T-Head, Shares Rise 6%
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- GE Aerospace Decline: GE Aerospace shares fell over 5% as investors expressed concerns over slowing revenue growth, despite the company exceeding analyst expectations in its fourth-quarter results, indicating market reaction to decelerating growth in its commercial engine and services unit.
- Meta Platforms Rebound: Meta's shares rose more than 5%, boosted by Jefferies reiterating a buy rating, with analysts highlighting the company's strong position in AI and attractive risk-reward potential, despite an 18% drop since its last earnings report.
- Northern Trust Beats Expectations: Northern Trust's shares jumped over 6% after reporting fourth-quarter earnings of $2.42 per share, surpassing Wall Street's expectation of $2.37, indicating strong net interest income and margin that bolstered market confidence.
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Harry Styles to Perform 30 Shows at Madison Square Garden in 2026
- Performance Schedule: Harry Styles will perform 30 consecutive shows at Madison Square Garden from August 26 to October 31, 2026, marking his only U.S. dates this year and the most shows at any venue during his international tour, which is expected to draw significant fan attendance.
- Ticket Sales: Tickets for the first ten shows will go on sale on January 30, 2026, with subsequent shows following on the same day and February 4, creating high demand that could lead to rapid sellouts, thereby enhancing Styles' market visibility and brand impact.
- Historical Achievement: Following his 15 consecutive shows at Madison Square Garden in 2022, the 2026 residency will bring his total solo performances at the venue to 52, further solidifying his status in the live music performance industry.
- Album Release: Styles' fourth album, KISS ALL THE TIME. DISCO, OCCASIONALLY, is set to release on March 6, 2026, and the accompanying new album is expected to boost his visibility and market demand significantly.
See More
Madison Square Garden Entertainment Reports Strong Q2 2026 Earnings Growth
- Significant Revenue Growth: Madison Square Garden Entertainment reported revenues of $460 million for Q2 2026, a 13% year-over-year increase, primarily driven by growth in entertainment offerings, arena license fees, and food and beverage sales, showcasing the company's success in diversifying its revenue streams.
- Operating Income Increase: Adjusted operating income reached $190.4 million, up 16% compared to the prior year, reflecting effective strategies in cost control and revenue growth despite higher SG&A expenses, thereby enhancing confidence in future profitability.
- Record Christmas Spectacular: The company achieved a record 215 paid performances and over 1.2 million tickets sold for the Christmas Spectacular, marking the highest attendance in 25 years, indicating sustained market appeal and brand value during the holiday season.
- Optimistic Future Outlook: Management expressed strong confidence in delivering robust revenue and adjusted operating income growth for fiscal 2026, supported by solid consumer demand and the upcoming 30-night Harry Styles residency, which is expected to further drive performance growth.
See More
Madison Square Garden Entertainment Q2 Earnings Report
- Earnings Highlights: Madison Square Garden Entertainment reported a Q2 GAAP EPS of $1.94, missing expectations by $0.32, indicating potential pressure on profitability that may affect investor confidence.
- Revenue Growth: The company achieved revenue of $459.94 million, a 12.9% year-over-year increase, beating market expectations by $7.69 million, demonstrating strong performance in the entertainment sector and sustained customer demand.
- Adjusted Operating Income: Adjusted operating income reached $190.4 million, an increase of $26.4 million or 16% compared to the prior year, reflecting improvements in cost control and operational efficiency, thereby strengthening the foundation for future profitability.
- Future Outlook: The company plans to launch 215 Christmas Spectacular shows in fiscal 2026 while accelerating share buybacks, showcasing confidence in future performance and potentially attracting more investor interest in its long-term growth prospects.
See More
Madison Square Garden Entertainment Reports Strong Q2 Financial Results
- Significant Revenue Growth: In Q2 of fiscal 2026, Madison Square Garden Entertainment reported revenues of $459.9 million, a 13% increase year-over-year, driven by the record-setting Christmas Spectacular, which sold over 1.2 million tickets, marking a 9% rise from last year.
- Operating Income Increase: The company achieved an operating income of $163.8 million in Q2, up 18% from the previous year, reflecting revenue growth despite rising direct operating and administrative expenses, indicating effective cost management.
- Strong Entertainment Performance: Revenues from entertainment offerings reached $360.5 million, a 13% increase, primarily due to more Knicks and Rangers games and additional performances of the Christmas Spectacular, reinforcing the company's leadership in the live entertainment market.
- Optimistic Future Outlook: CEO James Dolan stated that the company is experiencing strong momentum in fiscal 2026 and is on track to drive robust growth in both revenue and adjusted operating income, reflecting confidence in future performance.
See More
Harry Styles' Global Tour Kicks Off in May with 30-Show Residency at Madison Square Garden
- Global Tour Launch: Harry Styles' 'Together, Together' world tour is set to kick off in May 2026, expected to attract a large fanbase and drive revenue growth for related companies like Madison Square Garden Entertainment.
- Residency Performance Schedule: Styles will perform 30 consecutive shows at Madison Square Garden from August to October, marking the most shows ever at the venue, which is anticipated to generate high demand for ticket sales.
- Album Release Support: This tour supports Styles' fourth solo album 'Kiss All The Time. Disco Occasionally', set to release on March 6, 2026, potentially enhancing the tour's appeal and box office performance.
- Market Potential Analysis: With ticket presales starting on January 30, Styles' tour has already become a trending topic on Google, indicating strong market demand, and is expected to bring significant economic benefits to Madison Square Garden and other related companies.
See More
Alibaba Plans IPO for AI Chip Unit T-Head, Shares Rise 6%
- Alibaba IPO Plan: Alibaba is planning an initial public offering for its AI chip unit T-Head, resulting in a 6% increase in shares, which could provide new funding and enhance its market competitiveness.
- GE Aerospace Decline: GE Aerospace shares fell over 5% as investors expressed concerns over slowing revenue growth, despite the company exceeding analyst expectations in its fourth-quarter results, indicating market reaction to decelerating growth in its commercial engine and services unit.
- Meta Platforms Rebound: Meta's shares rose more than 5%, boosted by Jefferies reiterating a buy rating, with analysts highlighting the company's strong position in AI and attractive risk-reward potential, despite an 18% drop since its last earnings report.
- Northern Trust Beats Expectations: Northern Trust's shares jumped over 6% after reporting fourth-quarter earnings of $2.42 per share, surpassing Wall Street's expectation of $2.37, indicating strong net interest income and margin that bolstered market confidence.
See More
Harry Styles to Perform 30 Shows at Madison Square Garden in 2026
- Performance Schedule: Harry Styles will perform 30 consecutive shows at Madison Square Garden from August 26 to October 31, 2026, marking his only U.S. dates this year and the most shows at any venue during his international tour, which is expected to draw significant fan attendance.
- Ticket Sales: Tickets for the first ten shows will go on sale on January 30, 2026, with subsequent shows following on the same day and February 4, creating high demand that could lead to rapid sellouts, thereby enhancing Styles' market visibility and brand impact.
- Historical Achievement: Following his 15 consecutive shows at Madison Square Garden in 2022, the 2026 residency will bring his total solo performances at the venue to 52, further solidifying his status in the live music performance industry.
- Album Release: Styles' fourth album, KISS ALL THE TIME. DISCO, OCCASIONALLY, is set to release on March 6, 2026, and the accompanying new album is expected to boost his visibility and market demand significantly.
See More
