Madison Square Garden Sports Corp. MSGS or MSG Sports witnessed a 3.6% dip in its shares during yesterday’s trading session, following the release of the mixed second-quarter fiscal 2025 (ended Dec. 31, 2024) results. The company’s earnings per share missed the Zacks Consensus Estimate, but revenues surpassed the same. On a year-over-year basis, earnings declined, but revenues increased.

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MSGS gained from the strong demand for the Knicks and the Rangers, as both teams played combined three more regular season games at The Garden during second-quarter fiscal 2025 compared with the prior-year period.

MSGS’ Earnings & Revenue Discussion

MSG Sports reported quarterly earnings of 5 cents per share, which missed the Zacks Consensus Estimate of 25 cents by 80%. The reported figure declined 91.5% from the year-ago quarter’s earnings of 59 cents per share.

Revenues for the quarter amounted to $357.8 million, beating the consensus mark of $350.6 million by 2.1%. The metric also increased 9% year over year, driven by higher ticket sales, suite revenues, sponsorship and signage revenues. It also saw growth in food, beverage and merchandise sales, as well as local media rights fees.

Operating Highlights of MSGS

In the fiscal second quarter, adjusted operating income was $20.2 million, down 45% from $64.4 million reported in the year-ago quarter. Adjusted operating margin contracted 570 basis points to 5.6% year over year.

Direct operating expenses increased 19% to $275.8 million compared with the year-ago quarter. This increase was caused by higher team personnel compensation and higher net provisions for league revenue sharing expense (net of escrow and excluding playoffs). On the other hand, selling, general and administrative expenses were $67.9 million, up 4% on a year-over-year basis. This rise was due to increased operating lease costs and professional fees.

MSGS’ Balance Sheet

As of Dec. 31, 2024, MSG Sports had cash, cash equivalents and restricted cash of $115.9 million, up from $94.9 million as of fiscal 2024-end. As of the second quarter of fiscal 2025-end, the company had long-term debt of $275 million, in-line with the figure as of fiscal 2024-end.

In the first six months of fiscal 2025, net cash provided by operating activities was $35.6 million against net cash used by operating activities of $20.3 million reported in the year-ago comparable period.

MSGS’ Zacks Rank & Recent Consumer Discretionary Releases

MSG Sports currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.  

Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75 to $5.95.  

Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.  

The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.  

Royal Caribbean Cruises Ltd. RCL reported mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate while the revenues missed the same. Notably, both top and bottom lines increased on a year-over-year basis.  

The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario. 

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