Manchester United Earnings: Here’s Why the Stock is Up Now

Manchester United (NYSE:MANU) delivered a profit and met 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 1.85%.

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Manchester United Earnings Cheat Sheet

Revenue: Was the same at $91.7 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: Manchester United reported adjusted EPS income of 2 pence per share. By that measure, the company met the mean analyst estimate of 2 pence. It beat the average revenue estimate of $84.55 million.

Quoting Management: Ed Woodward, Executive Vice Chairman commented, ‘Each of our three primary sectors – Commercial, Broadcasting and Matchday – delivered strong top-line gains and helped us achieve a record third quarter for both revenue and adjusted EBITDA. In addition, we are delighted to be continuing and deepening our relationship with Aon, as our new Training Kit, Training Centre and Tour Partner, for an additional eight years.’

Key Stats (on next page)…

Revenue decreased 48.44% from $177.85 million in the previous quarter. EPS decreased 80% from $10.00 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 0 pence to a loss of 2 pence. For the current year, the average estimate has moved down from a profit of 27.57 pence to a profit of 22.65 pence over the last ninety days.

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