Madison Square Garden Sports Q4 revenue, profit beat estimates
MSGS•Revenue drivers
The company said the revenue increase was primarily due to higher playoff-related revenues, especially from Knicks playoff games and merchandise sales following the NBA championship win.
It also cited increased national media rights fees from new NBA deals as a driver of higher fourth-quarter revenue.
Madison Square Garden Sports said fourth-quarter local media rights fees decreased due to amendments to Knicks and Rangers local telecast agreements with MSG Networks.
Spin-off outlook
The company expects to complete the Rangers business spin-off by the end of October 2026.
Q4 results beat estimates
Madison Square Garden Sports said fiscal fourth-quarter revenue rose 37%, beating analyst expectations, while adjusted operating income also beat analyst expectations.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q4 Revenue | Beat | $278.70 mln | $221.26 mln (7 Analysts) |
| Q4 EPS | $1.16 | ||
| Q4 Net Income | $28.30 mln | ||
| Q4 Adjusted Operating Income | Beat | $39.60 mln | $26.77 mln (5 Analysts) |
| Q4 Operating Expenses | $159.53 mln | ||
| Q4 Operating Income | $32.20 mln |
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell".
