Madison Square Garden Co (NYSE: MSG) is
expected to report its Q4 results on August 19 and Loop Capital expects the company to report a loss due to the tough comparisons
on the Sports line.
Loop Capital expects $218.8 million in revenues, and a net operating loss of $0.84 a share, while consensus stands at $218.9
million in revenues and a net operating loss of $1.00/share.
Analyst David Miller said the results would be hit by New York Rangers' early exit from the NHL playoffs back in April.
Last year, the Rangers went to the third round of the playoffs.
Further, Madison's re-branded New York Spring Spectacular live stage show would take place in June/July/August, rather than
March/April/May as it had in the past.
"With that, most of those economics will accrue up to MSG's FQ1, not FQ4. Pre-open and marketing expenses for the show will also
fall in MSG's FQ4," Miller wrote in a note.
The analyst seeks further detail surrounding timing of the new Las Vegas arena, more color around cap-ex, and additional
granularity surrounding the types of acts MSG expects to host at the new arena.
Miller would also look for data on demand curves, as it will have a stiff competition in the DMA, particular from T-Mobile
Arena, the MGM Grand Arena, the Mandalay Arts Center, and the Thomas/Mack Center at UNLV.
Miller maintained his Buy rating on the stock, with a target price of $217, representing a potential upside of 18 percent over
Monday's close of $184.38.
"[W]ith cord-cutting and cord-shaving still capturing headlines, and with certain tent-pole summer films not performing up to
expectations, MSG is about as clean of a story as you're going to get in SMID Media - no exposure to the cable bundle, no exposure
to advertising, no exposure to F/X," Miller added.
Latest Ratings for MSG
Date |
Firm |
Action |
From |
To |
Aug 2016 |
Loop Capital |
Initiates Coverage on |
|
Buy |
Dec 2015 |
Guggenheim Securities |
Initiates Coverage on |
|
Buy |
Nov 2015 |
Albert Fried & Co. |
Downgrades |
Overweight |
Market Perform |
View More Analyst Ratings for
MSG
View the Latest Analyst Ratings
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