Morgan Stanley Comments on Madison Square Garden's Earnings Beat

Morgan Stanley published a research report on Madison Square Garden

after the company reported 4Q results. In the report, Morgan Stanley wrote, "MSG's 4Q results were well ahead of our and consensus expectations, with strong top line beats in all three segments and consolidated EBITDA >40% ahead of our estimate. In Media, this was the first clean quarter post the TWC renewal, and the affiliate fee beat confirms our view that street estimates for the TWC step-up have been overly conservative; however, AOCF was in-line, with Fuse investments likely driving higher opex. Entertainment profitability improved more than expected on higher venue utilization. The $25M Sports rev beat was likely on higher than expected playoff rev, but potentially also on greater underlying garden renovation benefits." Morgan Stanley maintained its Overweight rating on Madison Square Garden, which is currently trading up 5.49 percent from Thursday's $40.25 closing price.