Sphere Entertainment (NYSE:SPHR) Issues Quarterly Earnings Results, Beats Expectations By $4.96 EPS

Key Points

• Sphere Entertainment reported a quarterly earnings per share (EPS) of $3.39, significantly exceeding the consensus estimate of ($1.67) by $5.06, reflecting a positive performance compared to the previous year's EPS of ($2.00).
• The company experienced a revenue increase of 3.4% compared to the same quarter last year, despite a negative net margin of 33.00% and a negative return on equity of 16.78%.
• Analyst ratings for Sphere Entertainment are mixed, with one sell rating, four hold ratings, and six buy ratings, resulting in an average target price of $48.70.

Sphere Entertainment (NYSE:SPHR - Get Free Report) posted its quarterly earnings data on Monday. The company reported $3.39 earnings per share for the quarter, topping analysts' consensus estimates of ($1.57) by $4.96, RTT News reports. The company had revenue of $282.68 million during the quarter, compared to analysts' expectations of $280.23 million. Sphere Entertainment had a negative net margin of 14.68% and a negative return on equity of 19.27%. The firm's revenue for the quarter was up 3.4% on a year-over-year basis. During the same period in the prior year, the business posted ($2.00) earnings per share.

Sphere Entertainment Trading Up 2.6%

SPHR stock traded up $1.00 during mid-day trading on Wednesday, hitting $39.76. 794,944 shares of the company were exchanged, compared to its average volume of 781,170. The company has a quick ratio of 0.53, a current ratio of 1.13 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $1.42 billion, a P/E ratio of -7.47 and a beta of 1.71. The business has a fifty day simple moving average of $41.64 and a 200-day simple moving average of $37.86. Sphere Entertainment has a 12-month low of $23.89 and a 12-month high of $50.88.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Norges Bank purchased a new position in shares of Sphere Entertainment in the second quarter valued at approximately $551,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Sphere Entertainment by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,270 shares of the company's stock valued at $532,000 after purchasing an additional 831 shares during the period. First Trust Advisors LP boosted its stake in shares of Sphere Entertainment by 1.6% in the second quarter. First Trust Advisors LP now owns 20,610 shares of the company's stock valued at $861,000 after purchasing an additional 315 shares during the period. Legal & General Group Plc boosted its stake in shares of Sphere Entertainment by 11.2% in the second quarter. Legal & General Group Plc now owns 30,752 shares of the company's stock valued at $1,285,000 after purchasing an additional 3,103 shares during the period. Finally, Jump Financial LLC boosted its stake in shares of Sphere Entertainment by 131.0% in the second quarter. Jump Financial LLC now owns 58,295 shares of the company's stock valued at $2,437,000 after purchasing an additional 33,063 shares during the period. Hedge funds and other institutional investors own 92.03% of the company's stock.

Analyst Ratings Changes

SPHR has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Sphere Entertainment from a "sell" rating to a "hold" rating in a research report on Saturday, July 12th. JPMorgan Chase & Co. increased their target price on shares of Sphere Entertainment from $54.00 to $55.00 and gave the company an "overweight" rating in a research report on Wednesday, May 21st. Guggenheim increased their target price on shares of Sphere Entertainment from $69.00 to $74.00 and gave the company a "buy" rating in a research report on Friday, May 9th. The Goldman Sachs Group set a $36.00 target price on shares of Sphere Entertainment and gave the company a "buy" rating in a research report on Friday, April 18th. Finally, Susquehanna began coverage on shares of Sphere Entertainment in a report on Monday, April 28th. They issued a "positive" rating and a $37.00 price objective for the company. One research analyst has rated the stock with a sell rating, four have given a hold rating and six have given a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $49.50.

About Sphere Entertainment

Sphere Entertainment Co engages in the entertainment business. It produces, presents, or hosts various live entertainment events, including concerts, family shows, and special events, as well as sporting events, such as professional boxing, college basketball and hockey, professional bull riding, mixed martial arts, and esports and wrestling in its venues, including The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City; and The Chicago Theatre.