Key Takeaways Cruise demand and strong onboard spending are boosting CCL, prompting a raised FY2025 guidance. MANU sees a 56.6% earnings growth outlook, with brokerage targets implying up to 50.1% upside. MCS earnings estimates surged 21.2% in 60 days, with analysts projecting over 40% potential upside.The Leisure and Recreation Services industry has been gaining from optimizing business processes, consistent partnerships and digital initiatives. Robust demand for concerts, easing trade tension and strong ...

Core Insights - Madison Square Garden (MSGS) reported a revenue of $424.2 million for the quarter ended March 2025, reflecting a decrease of 1.3% year-over-year [1] - The company's earnings per share (EPS) was -$0.59, a significant decline from $1.57 in the same quarter last year, indicating a surprise of -139.86% compared to the consensus EPS estimate of $1.48 [1] Revenue Breakdown - Event-related revenues amounted to $176.76 million, surpassing the average estimate of $174.04 million from three analysts [4] - League distributions and other revenues were reported at $10.20 million, falling short of the estimated $12.33 million [4] - Sponsorship, signage, and suite licenses generated $113.70 million, exceeding the average estimate of $105.05 million [4] - Media rights revenues were $123.54 million, below the expected $136.07 million [4] Stock Performance - Over the past month, Madison Square Garden's shares returned -0.3%, slightly better than the Zacks S&P 500 composite's -0.5% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Revenue Performance - Revenues decreased by $5,757, or 1%, to $424,197 for the three months ended March 31, 2025, while increasing by $35,365, or 4%, to $835,263 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - The company anticipates a continued impact on revenues from local media rights fees due to the proposed amendments to the media rights agreements with MSG Networks [159]. - Revenues from league distributions rose primarily due to increased national media rights fees, contributing to the overall revenue growth for the nine months ended March 31, 2025 [164]. Operating Income and Expenses - Operating income for the three months ended March 31, 2025 was $32,342, a decrease of $47,400 or 59%, and for the nine months ended March 31, 2025 was $37,384, a decrease of $56,351 or 60% compared to the prior year periods [158]. - Direct operating expenses increased by $43,309, or 16%, to $316,335 for the three months ended March 31, 2025, and by $91,528, or 18%, to $600,299 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Selling, general and administrative expenses decreased by $1,701, or 2%, to $74,697 for the three months ended March 31, 2025, while increasing by $164 to $195,184 for the nine months ended March 31, 2025 [174][175]. Net Income and Loss - The company recorded a net loss of $14,227 for the three months ended March 31, 2025, compared to a net income of $37,877 in the prior year period, representing a decrease of $52,104 [158]. - The company reported a net loss of $20,658 for the nine months ended March 31, 2025, compared to a net income of $33,280 for the same period in 2024 [197]. Cash Flow and Financial Position - As of March 31, 2025, the company had $96,536 in cash and cash equivalents and $258,000 of additional available borrowing capacity under existing credit facilities [194]. - Net cash provided by operating activities for the nine months ended March 31, 2025, improved by $58,104 to $41,884 compared to the prior year period, driven by changes in working capital assets and liabilities [198]. - The company experienced a net increase in cash, cash equivalents, and restricted cash of $10,129 for the nine months ended March 31, 2025 [197]. Interest Income and Expense - Interest income increased by $574, or NM, to $1,051 for the three months ended March 31, 2025, and by $1,056, or 68%, to $2,605 for the nine months ended March 31, 2025 compared to the prior year periods [158]. - Interest expense decreased by $1,901, or 27%, to $5,020 for the three months ended March 31, 2025, and by $4,607, or 22%, to $16,662 for the nine months ended March 31, 2025 [178][179]. Impairment and Intangible Assets - The company performed its most recent annual impairment test of goodwill during the first quarter of fiscal year 2025, concluding there was no impairment [206]. - Identifiable indefinite-lived intangible assets amounted to $103,644 as of March 31, 2025, with no impairments identified during the latest annual impairment test [207]. Media Rights and Sponsorship - The New York Knicks' annual rights fee was reduced by 28%, while the New York Rangers' annual rights fee was reduced by 18% as part of the proposed amendments to media rights agreements [156]. - Sponsorship and signage revenues increased by $8,898 for the three months ended March 31, 2025, and by $11,602 for the nine months ended March 31, 2025 compared to the prior year periods [159]. - Suite revenues increased due to higher net sales of suite products, with a notable increase for the nine months ended March 31, 2025, attributed to one additional home game played [163].

Company Performance - Madison Square Garden (MSGS) reported a quarterly loss of $0.59 per share, significantly missing the Zacks Consensus Estimate of $1.48, and down from earnings of $1.57 per share a year ago, representing an earnings surprise of -139.86% [1] - The company posted revenues of $424.2 million for the quarter ended March 2025, which was 0.77% below the Zacks Consensus Estimate and a decrease from $429.95 million in the same quarter last year [2] - Over the last four quarters, Madison Square Garden has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Madison Square Garden shares have declined approximately 14.6% since the beginning of the year, compared to a 4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.97 on revenues of $122.84 million, and for the current fiscal year, it is $0.32 on revenues of $961.41 million [7] - The estimate revisions trend for Madison Square Garden is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Madison Square Garden belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Core Viewpoint - Madison Square Garden Sports Corp. reported a decrease in revenues and operating income for the fiscal third quarter ended March 31, 2025, primarily due to lower local media rights fees and fewer games played compared to the previous year [4][7][15]. Financial Performance - For the fiscal 2025 third quarter, the company generated revenues of $424.2 million, a decrease of $5.8 million, or 1%, compared to the prior year period [4][7]. - Operating income was reported at $32.3 million, a decrease of $47.4 million, or 59%, while adjusted operating income was $36.9 million, down $51.8 million, or 58% [4][15]. - The nine-month period ended March 31, 2025, saw revenues increase to $835.3 million, up $35.4 million, or 4%, compared to the same period in the previous year [5]. Revenue Breakdown - Local media rights fees decreased by $18.6 million due to proposed amendments to the Knicks' and Rangers' local media rights agreements [8]. - Food, beverage, and merchandise sales fell by $2.5 million, attributed to lower average per-game revenue and fewer games played [9]. - Sponsorship and signage revenues increased by $8.9 million, driven by higher net sales of existing inventory [10]. - Suite revenues rose by $3.4 million, and revenues from league distributions increased by $2.4 million due to higher national media rights fees [11]. Expense Analysis - Direct operating expenses increased by $43.3 million, or 16%, primarily due to higher league revenue sharing expenses and team personnel compensation [13]. - Selling, general, and administrative expenses decreased by $1.7 million, or 2%, mainly due to lower employee compensation [14]. Other Developments - The company launched its 2025-26 Knicks and Rangers season ticket renewal initiative, which has seen strong demand [3]. - A Transaction Support Agreement was entered into to support proposed transactions aimed at reducing MSG Networks' debt, which includes amendments to local media rights agreements [16].

Group 1 - Madison Square Garden Sports Corp. announced Tres Agaves as an official sponsor of the New York Rangers [1] - Tres Agaves will have dedicated ribbon LED signage and be featured on GardenVision during Rangers home games, enhancing brand visibility among fans [2] - The sponsorship includes virtual advertisements during MSG Networks broadcasts, ensuring high visibility for Tres Agaves among viewers at home [3] Group 2 - The partnership aims to integrate Tres Agaves into the in-arena experience, enhancing the connection with fans both in-arena and at home [4] - Tres Agaves is recognized as the 1 selling organic tequila in the US, aligning well with game day experiences [4] - Both brands emphasize community and collaboration, sharing a motto that highlights the importance of collective success [4] Group 3 - Madison Square Garden Sports Corp. operates professional sports teams including the New York Knicks and New York Rangers, along with development league teams [5] - MSG Sports also manages a performance center, the MSG Training Center, located in Greenburgh, NY [5] - Tres Agaves offers premium, USDA-certified organic tequila and mixers, crafted in Amatitán, Mexico, focusing on authenticity and quality [6]

Core Insights - Madison Square Garden Sports Corp. (MSGS) experienced a 3.6% decline in shares following mixed second-quarter fiscal 2025 results, with earnings per share missing estimates while revenues exceeded expectations [1][3] Earnings & Revenue Discussion - MSGS reported quarterly earnings of 5 cents per share, missing the Zacks Consensus Estimate of 25 cents by 80%, and reflecting a 91.5% decline from the previous year's earnings of 59 cents per share [3] - Revenues for the quarter reached $357.8 million, surpassing the consensus mark of $350.6 million by 2.1%, and increased by 9% year-over-year, driven by higher ticket sales, suite revenues, sponsorship, signage revenues, and growth in food, beverage, and merchandise sales [4] Operating Highlights - Adjusted operating income was $20.2 million, down 45% from $64.4 million in the year-ago quarter, with adjusted operating margin contracting by 570 basis points to 5.6% year-over-year [5] - Direct operating expenses rose by 19% to $275.8 million compared to the previous year, attributed to higher team personnel compensation and increased provisions for league revenue sharing [6] Balance Sheet - As of December 31, 2024, MSGS had cash, cash equivalents, and restricted cash totaling $115.9 million, an increase from $94.9 million at the end of fiscal 2024 [7] - Long-term debt remained stable at $275 million, consistent with the previous fiscal year-end [7] - In the first half of fiscal 2025, net cash provided by operating activities was $35.6 million, compared to net cash used of $20.3 million in the same period last year [7]

Core Insights - Madison Square Garden (MSGS) reported revenue of $357.76 million for the quarter ended December 2024, marking a year-over-year increase of 9.4% [1] - The earnings per share (EPS) for the same period was $0.05, a significant decrease from $0.59 a year ago, resulting in an EPS surprise of -80.00% compared to the consensus estimate of $0.25 [1] Revenue Breakdown - Event-related revenues totaled $139.37 million, exceeding the average estimate of $134.41 million by analysts, reflecting a year-over-year increase of 13.8% [4] - League distributions and other revenues were reported at $12.07 million, slightly below the average estimate of $12.98 million, representing a year-over-year decline of 4.1% [4] - Sponsorship, signage, and suite licenses generated $79.41 million, surpassing the average estimate of $75.54 million, with a year-over-year increase of 14.6% [4] - Media rights revenues amounted to $126.90 million, slightly below the average estimate of $127.39 million, showing a year-over-year growth of 3.6% [4] Stock Performance - Over the past month, Madison Square Garden shares have returned -0.4%, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Revenue Performance - Revenues increased by $30,861, or 9%, to $357,759 for the three months ended December 31, 2024, and by $41,122, or 11%, to $411,066 for the six months ended December 31, 2024 compared to the prior year periods [151]. - The increase in revenues from league distributions for the three months ended December 31, 2024 was primarily due to increased national media rights fees, contributing to a total increase of $2,649 [155]. - The increase in sponsorship and signage revenues for the three months ended December 31, 2024 was primarily due to additional home games and higher net sales of existing inventory, totaling an increase of $3,082 [154]. - The increase in revenues from local media rights fees was primarily due to contractual rate increases, totaling $1,666 for the three months ended December 31, 2024 [157]. - The increase in pre/regular season ticket-related revenues was $14,339 for the three months ended December 31, 2024, attributed to higher average per-game revenue [152]. Expense Analysis - Direct operating expenses rose by $43,528, or 19%, to $275,753 for the three months ended December 31, 2024, and by $48,219, or 20%, to $283,964 for the six months ended December 31, 2024 compared to the prior year periods [158]. - Team personnel compensation increased by $15,248 for the three months ended December 31, 2024, primarily due to changes in the Knicks roster [158]. - Selling, general and administrative expenses for the three months ended December 31, 2024 increased by $2,834, or 4%, to $67,900 compared to the prior year period [167]. - Net provisions for league revenue sharing expense for the three months ended December 31, 2024 were $38,457, an increase of $14,873 from the prior year period [159]. Income and Loss - Operating income decreased by $15,502, or 54%, to $13,315 for the three months ended December 31, 2024, and by $8,951, or 64%, to $5,042 for the six months ended December 31, 2024 compared to the prior year periods [151]. - Net income for the three months ended December 31, 2024 was $1,111, a decrease of $13,113, or 92%, compared to the prior year period, and for the six months ended December 31, 2024, net loss was $6,431, a decrease of $1,834, or 40% [151]. - Adjusted operating income for the three months ended December 31, 2024 decreased by $16,777, or 45%, to $20,239 compared to the prior year period, driven by higher direct operating expenses and higher selling, general and administrative expenses [183]. - Miscellaneous (expense) income, net for the three months ended December 31, 2024 reflected a net expense of $6,609, a decrease from net income of $2,991 in the prior year period [174]. Cash Flow and Financing - Net cash provided by operating activities improved by $55,878 million to $35,621 million for the six months ended December 31, 2024, primarily due to changes in working capital [196]. - Net cash used in investing activities decreased by $2,936 million to $2,302 million compared to the prior year period [198]. - Net cash used in financing activities was $12,373 million for the six months ended December 31, 2024, compared to net cash provided of $26,268 million in the same period of 2023 [199]. - As of December 31, 2024, the company had $107,823 in cash and cash equivalents and $250,000 of additional available borrowing capacity under existing credit facilities [191]. - As of December 31, 2024, total borrowings outstanding under credit facilities amounted to $275 million [210]. Assets and Liabilities - The company's deferred revenue obligations as of December 31, 2024 were $222,146, net of billed but not yet collected deferred revenue, primarily related to tickets and suites [189]. - Deferred revenue increased by $29,563 million due to higher collections of ticket, sponsorship, and suite sales [197]. - The carrying amount of goodwill as of December 31, 2024 was $226,523 million, with no impairment identified during the annual testing [203]. - Identifiable indefinite-lived intangible assets totaled $103,644 million as of December 31, 2024, with no impairments identified [205]. Future Outlook - The company expects adjusted operating income for fiscal year 2025 to reflect higher team personnel compensation and corresponding NBA luxury tax due to the Knicks' 2024-25 season roster [185]. - A hypothetical 100 basis point increase in floating interest rates would increase interest expense by approximately $2.8 million [210]. - The company relies on revenues from NBA and NHL teams, earning a disproportionate share of revenues in the second and third quarters of the fiscal year [200].

分组1 - Madison Square Garden (MSGS) reported quarterly earnings of $0.05 per share, missing the Zacks Consensus Estimate of $0.25 per share, representing an earnings surprise of -80% [1] - The company posted revenues of $357.76 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.06%, compared to year-ago revenues of $326.9 million [2] - Over the last four quarters, Madison Square Garden has surpassed consensus revenue estimates four times [2] 分组2 - The current consensus EPS estimate for the coming quarter is $1.79 on revenues of $435.48 million, and for the current fiscal year, it is $0.81 on revenues of $956.86 million [7] - The Zacks Industry Rank for Leisure and Recreation Services is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The stock has underperformed the market, losing about 3.3% since the beginning of the year, while the S&P 500 has gained 1.9% [3]