TKO Group Holdings Set to Announce Earnings Amid Performance Fluctuations

With a market capitalization of $23.9 billion, TKO Group Holdings, Inc. (TKO) is a prominent player in the sports and entertainment industry. The company manages various sports and entertainment intellectual properties and produces live events and content for digital, linear, and pay-per-view platforms. TKO also operates UFC FIGHT PASS, a streaming service offering live and on-demand content.

Upcoming Earnings Report

The New York-based company is poised to release its Q1 2025 earnings after market close on Thursday, May 8. Analysts anticipate TKO will report a profit of $0.48 per share, reflecting a substantial decline of 77.6% compared to the $2.14 per share reported in the same quarter last year. Historically, the company has met or exceeded Street estimates in two of the last four quarters but has fallen short twice.

Fiscal 2025 and 2026 Forecasts

For the full year of fiscal 2025, projections suggest that TKO Group will report an EPS of $2.41, marking a decline of 24.2% from the $1.94 reported in fiscal 2024. Looking forward to fiscal 2026, earnings are expected to significantly rebound, surging 93.4% year-over-year to $4.66 per share.

Stock Performance Overview

Over the past 52 weeks, TKO stock has rallied by 63.3%, outperforming both the S&P 500 Index’s 9.4% gain and the Communication Services Select Sector SPDR ETF Fund’s 21% rise during the same period.

Despite a robust Q4 2024 performance reported on February 26, where revenue grew by 4.6% year-over-year to $642.2 million, TKO’s shares fell 5.8% the following day. The revenue spike was bolstered by a 21.6% rise in UFC revenue compared to the same quarter last year, exceeding analysts’ expectations of $612.6 million. Adjusted EBITDA saw a 6.7% increase year-over-year, reaching $238.1 million, with earnings per share at $0.28, a turnaround from a loss of $0.16 in the prior-year quarter.

Revenue and EBITDA Projections

For fiscal 2025, TKO Group anticipates revenue between $2.9 billion and $3 billion, alongside an adjusted EBITDA ranging from $1.35 billion to $1.39 billion.

Analyst Sentiment

Analysts maintain a positive outlook on TKO stock, assigning it a “Strong Buy” rating overall. Out of 17 analysts covering the stock, 14 issued “Strong Buy” recommendations while three recommended holding. The average price target stands at $169.88, indicating an 8.1% potential upside from current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.