Last Updated: 19 Sep 2024
Executive Summary
Sphere Entertainment Co. (SPHR) is a leading entertainment company headquartered in New York City. Despite recent financial challenges, the company's strong brand recognition, diversified revenue streams, and strategic partnerships position it for potential growth.
Company Overview
Sphere Entertainment operates a portfolio of iconic entertainment venues, including Madison Square Garden, Radio City Music Hall, and the Beacon Theatre. The company also owns and operates a sports and entertainment network, MSG Networks.
Fundamental Analysis
Revenue: SPHR reported revenue of $1.03 billion for the trailing twelve months (TTM), representing a 1.12% year-over-year growth.
Earnings: The company reported a net loss of $182.2 million for the TTM, resulting in a diluted EPS of -$6.36.
Profitability: Sphere Entertainment's profit margins remain negative, with a net profit margin of -19.5% and an operating margin of -2.6% for the TTM.
Valuation: Based on the latest stock price of $39.99, SPHR has a market capitalization of $1.41 billion. The company trades at a forward P/E ratio of 28.41 and a price-to-sales ratio of 1.38.
Technical Analysis
Trend: SPHR has been trading in a downward trend since early 2023.
Support and Resistance: Key support levels include $38.00 and $35.00, while resistance levels include $42.00 and $45.00.
Moving Averages: The 50-day moving average is currently at $43.82, while the 200-day moving average is at $39.87.
Short Term Outlook
In the short term, SPHR may face continued pressure due to its negative earnings and the overall market volatility. However, the company's strong brand recognition and upcoming events could provide some support.
Long Term Outlook
Sphere Entertainment's long-term outlook depends on its ability to improve its financial performance and capitalize on its strategic partnerships. The company's ongoing investments in its venues and digital platforms could drive future growth.
Analyst Recommendations
Analysts have mixed views on Sphere Entertainment. Out of 8 analysts, 1 has a "Strong Buy" rating, 1 has a "Buy" rating, 6 have a "Hold" rating, and 0 have "Sell" or "Strong Sell" ratings. The average analyst target price is $47.50.
