Sphere Entertainment (NYSE:SPHR) Issues Quarterly Earnings Results, Beats Estimates By $0.40 EPS

Sphere Entertainment (NYSE:SPHR) issued its quarterly earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.40, FiscalAI reports. The business had revenue of $386.41 million for the quarter, compared to the consensus estimate of $368.14 million. Sphere Entertainment had a net margin of 2.16% and a negative return on equity of 8.84%. The firm’s quarterly revenue was up 37.7% on a year-over-year basis. During the same quarter in the prior year, the company earned ($2.27) EPS.

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

• Q1 consolidated results were strong — $386.4M in revenue and $110M adjusted operating income, while the Sphere segment grew ~70% y/y to $266M in revenue with AOI rising to $74.3M from $13.1M.
• The Wizard of Oz remains a durable revenue driver (nearly 3 million tickets sold and >$370M in ticket revenue to date), enabling multiple same‑day shows and helping drive incremental Las Vegas visitation.
• Global expansion progress continues — Abu Dhabi site selected with early procurement under way, National Harbor (6,000 seats) advancing financing/design with a ~4‑year target, and multiple other markets in discussions, but projects remain long and conditional.
• The Exosphere advertising/art platform is gaining momentum (50/50 art vs. advertising), attracting repeat major advertisers and management expects strong double‑digit growth in repeat Exosphere advertisers in 2026.
• SG&A rose 11% y/y to $106.6M primarily from mark‑to‑market share‑based compensation tied to the stock price, and Sphere carries material debt (≈$259M convertible + $275M term loan) despite ≈$596M cash, creating leverage and expense volatility risks.

Sphere Entertainment Stock Up 1.6%

Shares of NYSE:SPHR traded up $2.15 during midday trading on Tuesday, hitting $138.61. The stock had a trading volume of 484,994 shares, compared to its average volume of 804,281. Sphere Entertainment has a 12 month low of $27.61 and a 12 month high of $149.00. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.34. The business’s 50-day simple moving average is $120.41 and its 200-day simple moving average is $98.56. The company has a market cap of $4.92 billion, a P/E ratio of -307.03 and a beta of 1.69.

Analysts Set New Price Targets

Several research analysts recently issued reports on SPHR shares. Morgan Stanley upped their price target on shares of Sphere Entertainment from $135.00 to $158.00 and gave the stock an “overweight” rating in a research report on Friday. BTIG Research upped their price target on Sphere Entertainment from $110.00 to $127.00 and gave the stock a “buy” rating in a research report on Friday, February 13th. Benchmark raised Sphere Entertainment from a “sell” rating to a “hold” rating in a report on Tuesday, February 17th. The Goldman Sachs Group raised their target price on shares of Sphere Entertainment from $126.00 to $140.00 and gave the company a “buy” rating in a research note on Wednesday, April 8th. Finally, Seaport Research Partners raised shares of Sphere Entertainment from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 8th. Eight equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $122.75.

Institutional Investors Weigh In On Sphere Entertainment

Several hedge funds have recently added to or reduced their stakes in SPHR. Goldman Sachs Group Inc. lifted its holdings in Sphere Entertainment by 132.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 628,886 shares of the company’s stock valued at $20,577,000 after purchasing an additional 357,794 shares during the last quarter. Mane Global Capital Management LP bought a new position in shares of Sphere Entertainment in the third quarter worth $22,143,000. Woodline Partners LP bought a new position in shares of Sphere Entertainment in the third quarter worth $20,503,000. Islander Capital Partners L.P. bought a new position in shares of Sphere Entertainment in the fourth quarter worth $20,920,000. Finally, Voloridge Investment Management LLC grew its position in Sphere Entertainment by 419.8% in the fourth quarter. Voloridge Investment Management LLC now owns 212,086 shares of the company’s stock valued at $20,165,000 after acquiring an additional 171,285 shares during the last quarter. Institutional investors and hedge funds own 92.03% of the company’s stock.

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.