The Madison Square Garden Co First Quarter Earnings Sneak Peek

The Madison Square Garden Co (NASDAQ:MSG) will unveil its latest earnings on Friday, November 2, 2012. Madison Square Garden is a fully-integrated sports, entertainment, and media business.

The Madison Square Garden Co Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 17 cents per share, a decline of 39.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 30 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 19 cents during the last month. Analysts are projecting profit to rise by 3.6% compared to last year’s $1.33.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 15 cents, reporting net income of 37 cents per share against a mean estimate of profit of 22 cents per share.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose more than threefold to $28.6 million (37 cents a share) from $8.5 million (11 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 42.3% to $332.9 million from $233.9 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 14.8% in revenue from the year-earlier quarter to $203.9 million.

Stock Price Performance: Between August 3, 2012 and October 29, 2012, the stock price rose $3.32 (8.9%), from $37.20 to $40.52. The stock price saw one of its best stretches over the last year between January 31, 2012 and February 13, 2012, when shares rose for 10 straight days, increasing 12.7% (+$3.63) over that span. It saw one of its worst periods between July 13, 2012 and July 23, 2012 when shares fell for seven straight days, dropping 5.1% (-$1.86) over that span.

Key Stats:

After experiencing income increases the last two quarters, the company is hoping to keep the momentum going with this earnings announcement. In the third quarter of the last fiscal year, profit rose 62.8% before increasing in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 21.2% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.85 in the third quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 4% to $415.8 million while liabilities rose by 1.8% to $516.3 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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