What To Expect From Sphere Entertainment’s (SPHR) Q1 Earnings

Content production and distribution company Sphere Entertainment (NYSE:SPHR) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.

Sphere Entertainment beat analysts’ revenue expectations last quarter, reporting revenues of $394.3 million, up 27.9% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS and 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 31.2% year on year, a reversal from the 12.7% decrease it recorded in the same quarter last year.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 11.3%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Rush Street Interactive traded up 16.6% following the results while Monarch was also up 15.9%.

Read our full analysis of Rush Street Interactive’s results here and Monarch’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 7% on average over the last month. Sphere Entertainment is up 19.5% during the same time and is heading into earnings with an average analyst price target of $138.45 (compared to the current share price of $151.00).

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