Madison Square Garden Earnings: Here’s Why Investors are Buying Shares Now

Madison Square Garden, Inc. (NASDAQ:MSG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.08%.

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Madison Square Garden, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.5% to $0.49 in the quarter versus EPS of $0.40 in the year-earlier quarter.

Revenue: Rose 2.98% to $412.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Madison Square Garden, Inc. reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $405.11 million.

Quoting Management: President and CEO Hank Ratner said: “Our company delivered strong AOCF results in our fiscal third quarter, as we successfully managed our business through the NHL work stoppage. The final phase of the Transformation project will begin following the end of the Knicks’ and Rangers’ seasons, and we look forward to the successful completion of this historic project in the fall. With the approaching conclusion of this significant capital investment, long-term NBA and NHL collective bargaining agreements now in place, our recurring and increasing affiliation fee revenue base and a strong balance sheet, we believe our company is well-positioned to drive continued growth.”

Key Stats (on next page)…

Revenue increased 6.32% from $387.89 million in the previous quarter. EPS decreased 18.33% from $0.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.24 to a profit $0.23. For the current year, the average estimate has moved up from a profit of $1.26 to a profit of $1.45 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]