Content production and distribution company Sphere Entertainment (NYSE:SPHR) will be reporting results tomorrow before the bell. Here’s what to expect.
Sphere Entertainment met analysts’ revenue expectations last quarter, reporting revenues of $273.4 million, up 112% year on year. It was a decent quarter for the company, with an impressive beat of analysts’ operating margin 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 88.1% year on year to $222 million, a reversal from the 4.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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. Sphere Entertainment has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Sphere Entertainment’s peers in the leisure facilities segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bowlero delivered year-on-year revenue growth of 14.4%, beating analysts’ expectations by 4.3%, and Planet Fitness reported revenues up 5.3%, topping estimates by 2.5%. Bowlero traded up 11.9% following the results while Planet Fitness was also up 12.7%.
Read our full analysis of Bowlero’s results here and Planet Fitness’s results here.
There has been positive sentiment among investors in the leisure facilities segment, with share prices up 6.4% on average over the last month. Sphere Entertainment is down 4.7% during the same time and is heading into earnings with an average analyst price target of $51.50 (compared to the current share price of $43.81).
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