Why Madison Square Shares Are Rising Despite Playing Fewer Knicks And Rangers Games In Q2
Portfolio Pulse from Nabaparna Bhattacharya
Madison Square Garden Sports Corp. (NYSE:MSGS) shares rose after reporting Q2 fiscal 2024 revenue of $326.89 million, surpassing Wall Street's estimate of $325.72 million, despite an 8% year-over-year decline. The decrease in revenue was partially offset by higher local media rights fees and league distributions, even as the Knicks and Rangers played nine fewer home games. Earnings per share were $0.59, above the $0.55 estimate, but adjusted operating income fell 43% year over year. The company ended the quarter with $41.23 million in cash and equivalents. MSGS shares increased by 4.65% to $190.28.
February 06, 2024 | 6:11 pm
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Madison Square Garden Sports Corp. reported higher than expected Q2 fiscal 2024 revenue and earnings per share, despite a decrease in revenue and adjusted operating income year over year.
Despite the decrease in revenue and adjusted operating income, MSGS shares rose due to the company's ability to surpass Wall Street's revenue and EPS estimates. The positive market reaction likely stems from the company's resilience in facing challenges such as fewer home games and still managing to exceed financial expectations.
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