Exploring Sphere Entertainment's Earnings Expectations

Sphere Entertainment SPHR is set to give its latest quarterly earnings report on Tuesday, 2024-11-12. Here's what investors need to know before the announcement.

Analysts estimate that Sphere Entertainment will report an earnings per share (EPS) of $-2.31.

The announcement from Sphere Entertainment is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.04, leading to a 3.79% increase in the share price the following trading session.

Here's a look at Sphere Entertainment's past performance and the resulting price change:

Quarter Q4 2024 Q3 2024 Q2 2024 Q1 2024 EPS Estimate -2.04 -0.19 -0.80 EPS Actual -2 -1.33 -1.59 1.9 Price Change % 4.0% -5.0% -0.0% 7.000000000000001%

Market Performance of Sphere Entertainment's Stock

Shares of Sphere Entertainment were trading at $43.81 as of November 08. Over the last 52-week period, shares are up 21.42%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Sphere Entertainment

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Sphere Entertainment.

The consensus rating for Sphere Entertainment is Neutral, derived from 7 analyst ratings. An average one-year price target of $51.0 implies a potential 16.41% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of and Sphere Entertainment, three prominent industry players, offering insights into their relative performance expectations and market positioning.

Comprehensive Peer Analysis Summary

The peer analysis summary presents essential metrics for and Sphere Entertainment, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity Sphere Entertainment Neutral 111.77% $123.88M -1.92%

Key Takeaway:

Sphere Entertainment is positioned in the middle among its peers for consensus rating. It ranks at the top for revenue growth, indicating strong performance in this area. However, it lags behind in gross profit, placing it towards the bottom. In terms of return on equity, Sphere Entertainment is also at the bottom compared to its peers.

Delving into Sphere Entertainment's Background

Sphere Entertainment Co is a live entertainment and media company. The firm creates, writes, casts, produces, and tours shows and events. The group has two reportable segments which includeSphere and MSG Networks. Sphere is a next-generation entertainment medium, and MSG Networks operates two regional sports and entertainment networks, as well as a direct-to-consumer (DTC) and authenticated streaming product.

Sphere Entertainment's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Sphere Entertainment's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 111.77%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.

Net Margin: Sphere Entertainment's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -17.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sphere Entertainment's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -1.92%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Sphere Entertainment's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.96%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Sphere Entertainment's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.63.

To track all earnings releases for Sphere Entertainment visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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