Madison Square Garden
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Madison Square Garden missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins grew across the board.
Madison Square Garden logged revenue of $387.9 million. The seven analysts polled by S&P Capital IQ wanted to see sales of $416.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The eight earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS of $0.60 for Q2 were 82% higher than the prior-year quarter's $0.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 100.0%, 6,030 basis points better than the prior-year quarter. Operating margin was 20.9%, 720 basis points better than the prior-year quarter. Net margin was 12.1%, 520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $406.8 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.32 billion. The average EPS estimate is $1.22.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 99 members out of 109 rating the stock outperform, and 10 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Madison Square Garden a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Madison Square Garden is outperform, with an average price target of $46.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Madison Square Garden. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.