Sphere Entertainment (SPHR) Reports Earnings Tomorrow: What To Expect

Content production and distribution company Sphere Entertainment (NYSE:SPHR) will be reporting earnings tomorrow before market open. Here’s what investors should know.

Sphere Entertainment missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $321.3 million, up 98.3% year on year. It was a weak quarter for the company, with a miss of analysts’ revenue and earnings estimates.

Is Sphere Entertainment a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Sphere Entertainment’s revenue to grow 110% year on year to $271.4 million, a reversal from the 7.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.85 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Sphere Entertainment’s peers in the leisure facilities segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Life Time delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 5.2%, and United Parks & Resorts reported flat revenue, in line with consensus estimates. Life Time traded up 7.5% following the results while United Parks & Resorts’s stock price was unchanged.

Read our full analysis of Life Time’s results here and United Parks & Resorts’s results here.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the leisure facilities stocks have fared somewhat better, they have not been spared, with share prices down 6.4% on average over the last month. Sphere Entertainment is down 7.2% during the same time and is heading into earnings with an average analyst price target of $42.7 (compared to the current share price of $40.26).

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