Sphere Entertainment (NYSE:SPHR) Issues Quarterly Earnings Results, Beats Estimates By $1.35 EPS

Sphere Entertainment (NYSE:SPHR) released its earnings results on Thursday. The company reported $1.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $1.35, FiscalAI reports. Sphere Entertainment had a negative net margin of 13.87% and a negative return on equity of 17.20%. The company had revenue of $394.28 million for the quarter, compared to analyst estimates of $377.60 million. During the same period in the prior year, the firm earned ($3.49) EPS. The firm’s quarterly revenue was up 27.9% on a year-over-year basis.

Here are the key takeaways from Sphere Entertainment’s conference call:

• The company announced a second U.S. 6,000-seat Sphere at National Harbor, backed by ~ $200 million in state/local/private incentives and targeting opening in four years or less, with Abu Dhabi and multiple other market discussions underway.
• Strong Q4 results with total company revenue of $394.3 million and adjusted operating income of $128 million; Sphere segment revenue rose to $274.2 million (up >60% YoY) and AOI turned positive at $89.4 million.
• The Wizard of Oz continues to perform well—~2.2 million tickets sold and ~$290 million in ticket sales—with a planned Wizard of Oz 2.0 release and a new Sphere Experience (“From the Edge”) expected later this year, plus active IP discussions.
• MSG Networks showed pressure with revenues down to $120.1 million and AOI of $38.6 million, reflecting an ~14.5% subscriber decline, lower affiliate rates, and amended media-rights agreements.
• Balance-sheet and liquidity strengthened for Sphere: net debt of ~ $56 million offset by ~$477 million of unrestricted cash, refinancing of the Las Vegas facility with an improved rate and maturity extended to January 2031, and a new undrawn $275 million revolver for corporate purposes.

Sphere Entertainment Trading Down 0.3%

Sphere Entertainment stock traded down $0.31 during midday trading on Friday, reaching $115.41. The stock had a trading volume of 654,503 shares, compared to its average volume of 781,615. The stock’s 50-day simple moving average is $93.68 and its 200 day simple moving average is $71.45. Sphere Entertainment has a twelve month low of $23.89 and a twelve month high of $117.06. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market capitalization of $4.08 billion, a PE ratio of -22.39 and a beta of 1.68.

Hedge Funds Weigh In On Sphere Entertainment

A number of large investors have recently modified their holdings of the company. Legal & General Group Plc raised its stake in shares of Sphere Entertainment by 11.2% in the 2nd quarter. Legal & General Group Plc now owns 30,752 shares of the company’s stock valued at $1,285,000 after acquiring an additional 3,103 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Sphere Entertainment by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,270 shares of the company’s stock valued at $532,000 after purchasing an additional 831 shares in the last quarter. Sherbrooke Park Advisers LLC purchased a new position in Sphere Entertainment in the third quarter valued at about $251,000. Xponance LLC acquired a new position in shares of Sphere Entertainment during the fourth quarter worth about $212,000. Finally, CIBC Private Wealth Group LLC boosted its position in shares of Sphere Entertainment by 4,759.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 1,798 shares of the company’s stock worth $171,000 after buying an additional 1,761 shares during the period. 92.03% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the stock. Benchmark boosted their price objective on shares of Sphere Entertainment from $35.00 to $45.00 and gave the company a “sell” rating in a research report on Wednesday, November 5th. Bank of America lifted their target price on shares of Sphere Entertainment from $48.00 to $95.00 and gave the stock a “neutral” rating in a research note on Friday, December 19th. Wolfe Research reissued an “outperform” rating and set a $105.00 price target on shares of Sphere Entertainment in a research note on Monday, December 15th. New Street Research set a $110.00 price objective on Sphere Entertainment in a report on Thursday, January 15th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Sphere Entertainment in a research report on Friday. Eight analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Sphere Entertainment currently has a consensus rating of “Moderate Buy” and a consensus target price of $96.77.

Trending Headlines about Sphere Entertainment

Here are the key news stories impacting Sphere Entertainment this week:

• Positive Sentiment: Guggenheim raised its price target to $150 and kept a Buy rating — this implies meaningful upside from current levels and provides a new institutional endorsement for the name. Guggenheim raises price target
• Positive Sentiment: Q4 beat — EPS and revenue topped estimates and revenue rose ~28% YoY; management highlighted the ongoing success of the “Wizard of Oz” residency, a revenue driver and validation of the Sphere content/playbook. This is the primary near-term bullish catalyst behind recent share strength. Q4 Sales Beat (Yahoo Finance)
• Positive Sentiment: Growth roadmap — company outlined a 4-year timeline for a National Harbor venue and is targeting global expansion supported by roughly $200M in incentives, signaling a multi-year development pipeline that can expand addressable market and future revenue. National Harbor timeline & expansion plans
• Neutral Sentiment: Earnings call transcript is available for detail — read for management commentary on margins, capex/timing for new venues, and cadence of future shows (useful for modeling). Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Official press release with quarter/fiscal detail and the National Harbor announcement is posted (useful primary source). BusinessWire: Q4 & full-year results
• Negative Sentiment: Profitability and near-term earnings uncertainty remain — the company still shows a negative net margin and negative ROE, and some sell-side modeling forecasts negative full-year EPS; that keeps valuation sensitive to execution and cadence of new venue rollouts. MarketBeat earnings summary

About Sphere Entertainment

Sphere Entertainment Co (NYSE: SPHR) is a publicly traded company focused on the development and operation of large-scale immersive entertainment venues. Established as a standalone entity in early 2023 following its separation from Madison Square Garden Entertainment, Sphere leverages cutting-edge audiovisual technologies to create next-generation concert, film and cultural experiences. The company’s flagship venue in Las Vegas showcases its core capabilities, while additional projects are in various stages of development around the world.

At the Las Vegas Sphere, Sphere Entertainment has installed one of the largest LED display surfaces on the planet, wrapping audiences in 16K resolution imagery and spatial audio powered by proprietary sound systems.