Content production and distribution company Sphere Entertainment (NYSE:SPHR) will be reporting earnings tomorrow morning. Here’s what to look for.
Sphere Entertainment beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $227.9 million, up 93.1% year on year. It was a decent quarter for the company, with a solid beat of analysts’ adjusted operating income estimates.
Is Sphere Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sphere Entertainment’s revenue to decline 8.2% year on year to $288.3 million, a reversal from the 96.9% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.98 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sphere Entertainment has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Sphere Entertainment’s peers in the leisure facilities segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Nation’s revenues decreased 2.4% year on year, beating analysts’ expectations by 1.4%, and Planet Fitness reported revenues up 19.4%, topping estimates by 4.9%. Live Nation traded down 1.9% following the results while Planet Fitness was also down 8.9%.
Read our full analysis of Live Nation’s results here and Planet Fitness’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the leisure facilities stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Sphere Entertainment is down 5.2% during the same time and is heading into earnings with an average analyst price target of $48.29 (compared to the current share price of $43.59).
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