Troy Bayer
Growth at reasonable price, small-cap, energy, media

Keep Expectations Low For Madison Square Garden Earnings

Over the past year, The Madison Square Garden Company (NASDAQ:MSG) has been an extremely well-performing stock. MSG continues to trade near its 52-week high and has been red hot since completion of the Garden's Renovation and the enormous success of the New York Knicks in the 2012-13 season. However, several factors suggest MSG's quarterly earnings report will disappoint, specifically pertaining to the company's Sports segment. These factors include the National Hockey League's (NHL) lockout, the National Basketball Association's (NBA) luxury tax, and a reduction in the number of home playoff games from the year prior.

(click to enlarge)

First, it should be noted that MSG Sports is one of three segments of MSG as a whole, and currently...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details