Valued at a market cap of $23.9 billion, TKO Group Holdings, Inc. (TKO) is a sports and entertainment company that owns and manages sports and entertainment IP, produces and licenses live events and content across digital, linear, and pay-per-view platforms, and offers UFC FIGHT PASS, a streaming service for live, on-demand, and original content.
The New York-based company is expected to unveil its Q1 2025 earnings after the market closes on Thursday, May 8. Ahead of this event, analysts project TKO to report a profit of $0.48 per share, a decline of 77.6% from $2.14 per share reported in the year-ago quarter. While the company has surpassed Street's bottom-line estimates in two of the past four quarters, it fell short of expectations on two other occasions.
For the full fiscal 2025, analysts forecast TKO Group to report an EPS of $2.41, marking an increase of 24.2% decline from $1.94 reported in fiscal 2024. Moreover, in fiscal 2026, its earnings are expected to surge 93.4% year-over-year to $4.66 per share.
TKO stock has surged 63.3% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 9.4% gain and the Communication Services Select Sector SPDR ETF Fund’s (XLC) 21% rise during the same time frame.
Shares of TKO fell 5.8% the next day after it reported solid Q4 2024 results on Feb. 26. Revenue for the quarter rose 4.6% year-over-year, reaching $642.2 million, driven by a 21.6% increase in UFC compared to the same quarter last year. This performance also exceeded analysts' expectations of $612.6 million in revenue. Adjusted EBITDA came in at $238.1 million, marking a 6.7% increase from the year-ago quarter, while EPS stood at $0.28, compared to a loss of $0.16 in the prior-year quarter.
In addition, for fiscal 2025, TKO Group expects revenue to be in the range of $2.9 billion to $3 billion and adjusted EBITDA to range between $1.35 billion and $1.39 billion.
Analysts' consensus view on TKO stock is bullish, with a "Strong Buy" rating overall. Out of 17 analysts covering the stock, opinions include 14 "Strong Buys" and three "Holds.” Its mean price target of $169.88 suggests an 8.1% upside potential from current price 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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
