Shares of Madison Square Garden Sports (MSG Sports) took a tumble on Thursday as the company’s revenue sank in the fiscal fourth quarter.
Decrease in Stock Value
The stock experienced a 9.4% decline, reaching $186.36 in midday trading. However, it is worth noting that shares have seen a modest 1.6% increase since the beginning of the year.
MSG Sports, the owner of the renowned New York Knicks basketball team and New York Rangers hockey team, reported a significant 28% drop in revenue, amounting to $126.9 million. This figure is slightly higher than the $123.8 million forecast by analysts, as reported by FactSet. The company attributes this decline to the timing of the National Hockey League regular season and a decrease in playoff home games compared to the previous year.
MSG Sports also experienced a shift from profitability to loss, reporting a loss of $9.3 million (39 cents per share) in the fiscal fourth quarter. This stands in stark contrast to the profit of $27.2 million ($1.11 per share) achieved during the same period a year ago. Analysts polled by FactSet had predicted a loss of 14 cents per share.