As you might know, Madison Square Garden Entertainment Corp. (NYSE:MSGE) recently reported its quarterly numbers. Statutory earnings per share fell badly short of expectations, coming in at US$1.56, some 31% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$407m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Madison Square Garden Entertainment after the latest results.

View our latest analysis for Madison Square Garden Entertainment

Taking into account the latest results, Madison Square Garden Entertainment's eight analysts currently expect revenues in 2025 to be US$955.1m, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 60% to US$1.06 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$960.6m and earnings per share (EPS) of US$1.92 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The consensus price target held steady at US$45.29, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Madison Square Garden Entertainment at US$48.00 per share, while the most bearish prices it at US$41.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Madison Square Garden Entertainment's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2025. That is a notable change from historical growth of 25% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Madison Square Garden Entertainment is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Madison Square Garden Entertainment going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Madison Square Garden Entertainment that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.