Why Madison Square Garden, Hain Celestial Group, and Sarepta Therapeutics Slumped Today
Tuesday wasn't the best of days on Wall Street, as major stock indexes lost modest amounts of ground. A favorable earnings report from home improvement retail giant Home Depot led to some enthusiasm among investors, but most eyes are focused squarely on the Fed: The central bank is due to release the minutes of its latest meeting later this week. Moreover, some companies saw their share prices drop precipitously on bad news. Madison Square Garden (NYSE: MSG), Hain Celestial Group (NASDAQ: HAIN), and Sarepta Therapeutics (NASDAQ: SRPT) were among the worst performers. Here's why they did so poorly.
Shares of Madison Square Garden fell 9% after the operator of the landmark arena in Manhattan announced its fiscal fourth-quarter financial results. Revenue dropped 17% from year-ago levels, with the bulk of the decline coming from MSG's sports division. Adjusted operating losses were also much larger than they were a year ago. Even though some of the revenue decline was due to a change in accounting treatment for season tickets, Madison Square Garden also saw significant construction expenses related to its MSG Sphere arena at the Venetian resort in Las Vegas, and investors weren't pleased to see total cost projections rise significantly from previous estimates.
Image source: Madison Square Garden.
Source Fool.com
