What To Expect From Sphere Entertainment’s (SPHR) Q2 Earnings

Content production and distribution company Sphere Entertainment (NYSE:SPHR) will be announcing earnings results this Thursday morning. Here’s what to expect.

Sphere Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $386.4 million, up 37.7% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

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

This quarter, the market is expecting Sphere Entertainment’s revenue to grow 9% year on year, improving from the 3.4% increase it recorded in the same quarter last year.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sphere Entertainment has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Sphere Entertainment’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AMC Entertainment delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 8.7%, and Delta reported revenues up 18.7%, topping estimates by 3.9%. AMC Entertainment traded up 13.4% following the results while Delta was down 3.2%.

Read our full analysis of AMC Entertainment’s results here and Delta’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Sphere Entertainment is down 17% during the same time and is heading into earnings with an average analyst price target of $176.55 (compared to the current share price of $143.00).

ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.

AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.