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Madison Square (MSG) Lags Q4 Earnings, Beats Revenues - Tale of the Tape

The Madison Square Garden Company ( MSG ) operates sports, entertainment, and media businesses in the United States. In Oct 2014, the company's board approved plans to separate its entertainment businesses from the media and sports businesses, resulting in two companies. This would help both the companies to concentrate more on their core competencies, and grow rapidly within the vastly competitive entertainment business.

A strong portfolio of strategically aligned venues, content and distribution channels have been helping the company to organize a wide range of popular events over the past few years, thereby resulting in improvement in revenues.

Investors should also note the recent earnings estimate revisions for MSG, as the consensus estimate has been almost moving upwards. Moreover, MSG has a mixed history in earnings season. Madison Square has missed earnings results in three of the last four quarters, making for an average negative surprise of 21.25%. Meanwhile, the company has posted positive revenue surprise in all the trailing four quarters.

Currently, MSG has a Zacks Rank #2 (Buy) but that could change following Madison Square Garden's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: MSG misses on adjusted earnings. Our consensus earnings estimate called for EPS of 73 cents per share, and the company reported adjusted earnings per share of 61 cents instead. Investors should note that these figures take out stock option expenses. The company reported a GAAP EPS of 78 cents.

Revenues: MSG reported revenues of $542.5 million. This beat our consensus estimate of 530 billion.

Key Stats to Note: Adjusted operating cash flow was $149.8 million, up approximately 18%. Selling, general and administrative expenses were $92.1 million, up 5.5% year over year.

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MADISON SQUARE (MSG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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