The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Atlanta Braves Holdings (BATRK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Atlanta Braves Holdings is a member of our Consumer Discretionary group, which includes 257 different companies and ...

Atlanta Braves Holdings (BATRK) shares rallied 5.4% in the last trading session to close at $38.08. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.7% loss over the past four weeks.Atlanta Braves Holdings recently announced the Braves Development Company’s acquisition of Pennant Park, a six-building office complex located at the intersection of I-75 and I-285 adjacent to The Battery Atlanta.  The acquisitio ...

Atlanta Braves Holdings (BATRK) closed the last trading session at $39.58, gaining 0% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $51.67 indicates a 30.6% upside potential.The average comprises three short-term price targets ranging from a low of $45 to a high of $58, with a standard deviation of $6.51. While the lowest estimate indicates an increase of 13.7% from the current p ...

Shares of Atlanta Braves Holdings (BATRK) have gained 4.2% over the past four weeks to close the last trading session at $40.37, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $52 indicates a potential upside of 28.8%.The average comprises three short-term price targets ranging from a low of $45 to a high of $58, with a standard deviation of $6.56. While the lowest estimate ind ...

Financial Performance and Revenue - The Braves generated net revenue from postseason play of approximately $2.0 million in 2024, $11.3 million in 2023, and $8.4 million in 2022, with postseason appearances in 2 out of 18 potential games in 2024 and 4 out of 18 in 2023[100]. - Broadcasting rights are a significant revenue source, and any decrease in this revenue could negatively impact financial results[111]. - The Mixed-Use Development is expected to increase revenue, but there is no assurance that attendance will rise as anticipated[122]. - The company faced significant revenue impacts due to extraordinary events like COVID-19, with all MLB games postponed in 2020 and limitations on fan attendance in 2021[130]. - Economic uncertainty may adversely affect consumer demand for the company's products and services, impacting revenue derived from discretionary spending[151]. Player Contracts and Salaries - The Braves' Annual Player Salary Budget impacts their ability to enter into new player contracts, with flexibility increasing when existing obligations are below the budget limit[51]. - The MLB Collective Bargaining Agreement (CBA) mandates a minimum Major League contract salary of $740,000 for the 2024 season, with annual increases[65]. - The Competitive Balance Tax thresholds are set at $241 million for 2025 and $244 million for 2026, with penalties for exceeding these limits[69]. - The Braves were required to pay the Competitive Balance Tax for the 2024 and 2023 seasons due to exceeding predetermined payroll thresholds[104]. - The Braves' long-term contracts payable amount to $221.1 million in 2025, $169.2 million in 2026, $120.9 million in 2027, $105.2 million in 2028, $63.1 million in 2029, and $83.2 million combined thereafter[103]. Stadium and Facilities - The total cost of Truist Park was approximately $722 million, funded by $392 million from Cobb County and $330 million from Braves Holdings[56]. - Truist Park features 41,100 seats, including 63 suites and 4,700 premium seats, and spans approximately 1.1 million square feet[57]. - The Braves operate a new spring training facility in North Port, Florida, with an 8,200 capacity stadium and various training facilities[59]. - The Battery Atlanta is a 2.25 million square-foot mixed-use development surrounding Truist Park, featuring various entertainment and commercial facilities[60]. - The Stadium Operating Agreement obligates the Braves to play all home games at Truist Park through the 2046 season, with a 5-year extension option[117]. Debt and Financial Obligations - Braves Holdings had approximately $197.9 million in outstanding debt for stadium-related costs and $392.2 million for Mixed-Use Development as of December 31, 2024[121]. - Braves Holdings is subject to a Debt Service Rule requiring outstanding indebtedness to be at or below 8.0x available cash flow, or 12.0x for clubs with new stadiums, with excludable indebtedness set at $100 million for fiscal years 2024-2026[73]. - The company may face liquidity issues if unable to obtain debt financing, potentially leading to significant dilution for stockholders[114]. - The company’s ability to incur additional indebtedness is limited, which may negatively impact operations and financial flexibility[113]. - As of December 31, 2024, the company had $173.5 million in floating rate debt with a weighted average interest rate of 6.2% and $446.6 million in fixed rate debt with a weighted average interest rate of 4.4%[239]. Operational Challenges and Risks - The company is transitioning away from services previously provided by Liberty Media, which may lead to increased costs and operational challenges[88]. - Braves Holdings has incurred and expects to continue incurring material costs related to its separation from Liberty Media, impacting financial reporting and compliance[93]. - The company is working to replicate or replace critical services and systems previously provided by Liberty, which may involve additional costs and risks[89]. - The company is exposed to market risk due to changes in stock prices and interest rates, which could affect future earnings[237]. - The company's internal controls over financial reporting may not be adequate, which could lead to material misstatements and loss of investor confidence[157]. Employee and Talent Management - As of December 31, 2024, Braves Holdings had approximately 1,450 full-time, seasonal, and part-time employees, emphasizing a commitment to diverse and supportive workplaces[77]. - The company is focused on talent development, offering training and development programs to enhance employee skills and retention[79]. - Braves Holdings is committed to providing attractive compensation and benefits programs, including bonuses, healthcare, and retirement plans[81]. Regulatory and Compliance Issues - The company is subject to various privacy regulations, including the California Consumer Privacy Act, which became effective on January 1, 2020, and the California Privacy Rights Act, effective January 1, 2023[138]. - The company operates in international markets, including the Dominican Republic, which exposes it to operational risks and compliance challenges with local regulations[139]. - The exclusive forum provisions in the company's charter may limit stockholders' ability to bring claims in favorable judicial forums[156]. Market Competition and Audience Engagement - Braves Holdings is competing with various forms of entertainment and media for game day attendance and broadcasting revenue, which are critical for its financial performance[75]. - Viewership of professional baseball has experienced declines, with potential adverse effects on financial results if future declines occur[110]. - The Braves may face increased competition and diluted revenue from potential MLB expansion, which could impact player retention and fan interest[109]. - The company's ability to attract and retain key personnel is critical, with competition for qualified employees posing a risk to commercial success[105]. Ownership and Control - John C. Malone owns approximately 48.3% of the aggregate voting power, which may influence significant corporate actions and discourage potential change of control transactions[99]. - The company has restrictions on share ownership that may prevent changes in control, requiring MLB approval for any person or group seeking to acquire a controlling interest[144]. - The company has a multi-series voting structure, with BATRA shares having one vote per share, BATRB shares having ten votes per share, and BATRK shares having no voting rights[149]. - Dr. Malone owns approximately 48.3% of the aggregate voting power, which may lead to the company being deemed a "controlled company" under Nasdaq standards[147]. Miscellaneous Risks - Personal injuries at games could result in claims and increased expenses, despite existing insurance coverage[129]. - The company may face increased operational costs during periods of high inflation, affecting overall financial performance[152]. - Significant risks are associated with the Mixed-Use Development, including adverse market conditions and potential cost overruns[123]. - If the Stadium Operating Agreement is terminated, it could adversely impact the Braves' reputation and financial condition[120].

Core Viewpoint - Atlanta Braves Holdings reported a quarterly loss of $0.31 per share, which was better than the Zacks Consensus Estimate of a loss of $0.69, and an improvement from a loss of $0.52 per share a year ago [1][2] Financial Performance - The company posted revenues of $52.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.63%, and down from $67.75 million year-over-year [3] - The earnings surprise for the quarter was 55.07%, while the company had a negative surprise of -68% in the previous quarter [2] Stock Performance - Atlanta Braves Holdings shares have increased by approximately 2% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.07 on revenues of $31 million, and -$0.76 on revenues of $695.29 million for the current fiscal year [8] - The trend of estimate revisions for the company is mixed, which could change following the recent earnings report [7] Industry Context - The Diversified Operations industry, to which Atlanta Braves Holdings belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [9]

ATLANTA BRAVES HOLDINGS REPORTS FOURTH QUARTER AND YEAR END 2024 FINANCIAL RESULTS Atlanta, Georgia, February 26, 2025 – Atlanta Braves Holdings, Inc. ("ABH") (Nasdaq: BATRA, BATRK) today reported fourth quarter and year end 2024 results. Headlines include: Discussion of Results | | Three months ended | | | Twelve months ended | | | | --- | --- | --- | --- | --- | --- | --- | | | December 31, | | | December 31, | | | | | 2023 | 2024 | % Change | 2023 | 2024 | % Change | | | amounts in thousands | | | amount ...

Revenue Performance - Total revenue for Q3 2024 reached $291 million, a 7% increase from $272 million in Q3 2023[1] - Baseball revenue increased by 7% to $273 million, while mixed-use development revenue grew by 12% to $17 million[1][3] - Total revenue for the three months ended September 30, 2024, was $290,674, an increase of 6.3% compared to $271,824 for the same period in 2023[24] - Baseball revenue for the nine months ended September 30, 2024, reached $561,233, up 6.1% from $528,762 in the prior year[24] Operating Income and Expenses - Adjusted OIBDA for Q3 2024 was $31.4 million, a decrease of 22% compared to $40.3 million in Q3 2023[3][7] - Operating income for Q3 2024 was $6.4 million, down 59% from $15.7 million in Q3 2023[3][7] - Baseball operating costs rose by 14% to $226 million, primarily due to higher player salaries and increased expenses[3][7] - Operating income for the three months ended September 30, 2024, was $6,402, down from $15,716 in the same period of 2023[24] Cash Flow and Debt - Cash decreased by $20 million in Q3 2024, while debt increased by $40 million due to borrowings for working capital[17] - Cash and cash equivalents decreased to $100,852 as of September 30, 2024, from $125,148 as of December 31, 2023[19] - The company reported a net cash used in operating activities of $12,272 for the nine months ended September 30, 2024, compared to $21,306 in the prior year[26] - Long-term debt decreased to $502,473 as of September 30, 2024, from $527,116 at the end of 2023[22] Assets and Liabilities - Total current assets increased to $224,138 as of September 30, 2024, compared to $218,019 as of December 31, 2023[19] - Total liabilities rose to $1,014,780 as of September 30, 2024, compared to $963,688 at the end of 2023, reflecting an increase of 5.3%[22] - Total assets increased to $1,557,247 as of September 30, 2024, compared to $1,504,330 at the end of 2023[20] Performance Highlights - The number of tickets sold exceeded three million for the third consecutive year[2] - The team made its 7th consecutive postseason appearance, indicating strong performance[2] - Mixed-use development revenue increased primarily due to higher parking revenue and increased rental income[6]

Revenue Performance - Atlanta Braves Holdings reported total revenue of $290.7 million for the three months ended September 30, 2024, compared to $271.8 million for the same period in 2023, representing a 6.5% increase [124]. - Baseball event revenue increased by $12.0 million (7.5%) to $172.8 million for the three months ended September 30, 2024, driven by new sponsorship agreements and contractual rate increases [125]. - Broadcasting revenue rose by $1.7 million (2.5%) to $70.99 million for the three months ended September 30, 2024, attributed to an increase in the number of regular season games and contractual rate increases [126]. - Retail and licensing revenue decreased by $4.4 million (21.1%) to $16.5 million for the three months ended September 30, 2024, primarily due to reduced attendance at regular season home games [126]. - Other revenue increased by $7.7 million (147.0%) to $12.96 million for the three months ended September 30, 2024, mainly due to additional concerts at the Stadium [126]. Expenses and Losses - The company experienced a net loss of $9.56 million for the three months ended September 30, 2024, compared to a net loss of $9.66 million for the same period in 2023 [124]. - Total expenses for the three months ended September 30, 2024, were $225.97 million, up from $198.20 million in the same period in 2023, reflecting a 14.0% increase [124]. - Baseball operating expenses rose by $27.8 million and $45.8 million for the three and nine months ended September 30, 2024, respectively, primarily due to increases in major league player salaries and MLB's revenue sharing plan [128]. - Adjusted OIBDA decreased by $8.9 million and $7.4 million during the three and nine months ended September 30, 2024, respectively, compared to the prior year [136]. Cash and Debt Management - The Company had $100.9 million in cash and cash equivalents as of September 30, 2024, primarily invested in highly rated financial instruments [147]. - The maximum amount available under the League Wide Credit Facility was $125.0 million as of September 30, 2024, which remains undrawn [152]. - The Company expects to fund projected uses of cash through cash on hand, operations, and borrowings under construction loans and revolvers [149]. - As of September 30, 2024, Braves Facility Fund LLC had fully drawn $39.7 million under the MLB facility fund - revolver, with a repayment date of July 10, 2026 [155]. - The TeamCo Revolver has revolving commitments of $150 million, with $120.0 million available as of September 30, 2024, after $30 million was drawn [155]. Interest Rate Exposure - Interest expense increased by $0.7 million during the three and nine months ended September 30, 2024, primarily due to higher interest rates on variable rate debt [140]. - As of September 30, 2024, the company had $161.9 million in floating rate debt with a weighted average interest rate of 6.6% [159]. - The company also had $481.2 million in fixed rate debt with a weighted average interest rate of 4.4% as of September 30, 2024 [159]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt, including interest rate swap arrangements when deemed appropriate [158]. - The nature and amount of long-term and short-term debt are expected to vary based on future requirements and market conditions [158]. Strategic Focus - The company is transitioning various general and administrative services from Liberty Media Corporation to its own management team following the Split-Off completed on July 18, 2023 [112]. - The company is facing potential impacts from the Diamond Sports Group bankruptcy, which could affect its local broadcasting revenue [120]. - Atlanta Braves Holdings is focused on expanding its mixed-use development segment, which includes retail, office, hotel, and entertainment operations within The Battery Atlanta [121]. - Mixed-Use Development revenue increased by $1.9 million and $5.2 million for the three and nine months ended September 30, 2024, respectively, driven by increases in parking revenue and rental income [127]. - Mixed-Use Development Adjusted OIBDA increased by $1.5 million and $3.6 million for the three and nine months ended September 30, 2024, respectively [138]. - Corporate and Other Adjusted OIBDA loss decreased by $2.1 million and $7.2 million during the three and nine months ended September 30, 2024, respectively [139]. Earnings Performance - Net earnings for the three months ended September 30, 2024, were $10.0 million, a significant improvement from a net loss of $6.0 million in the same period of 2023 [146].

Core Viewpoint - Atlanta Braves Holdings reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.50 per share, and compared to a loss of $0.10 per share a year ago [1][2] Financial Performance - The company posted revenues of $290.67 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.46%, and compared to year-ago revenues of $271.82 million [3] - The earnings surprise for the quarter was -68%, and the company has surpassed consensus EPS estimates just once over the last four quarters [2][3] Stock Performance - Atlanta Braves Holdings shares have added about 3% since the beginning of the year, while the S&P 500 has gained 21.2% [4] - The current Zacks Rank for the stock is 4 (Sell), indicating expected underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the coming quarter is -$0.59 on $62.44 million in revenues, and -$0.44 on $683.45 million in revenues for the current fiscal year [8] - The estimate revisions trend for the company is currently unfavorable, which may impact future stock movements [6][7] Industry Context - The Diversified Operations industry, to which Atlanta Braves Holdings belongs, is currently in the top 24% of over 250 Zacks industries, indicating a favorable industry outlook [9]